In his first "Executive Decision" segment of Mad Money Monday evening, Jim Cramer checked back in with Jagdeep Singh, chairman and CEO of QuantumScape (QS) , the solid-state battery maker that saw its shares plunge 16% last week and further Monday as investors locked in their gains.
We reviewed the charts of QS of Monday, writing that, "These two charts of QS (above) do show a parabolic advance that is in the process of correcting to the downside. Early buyers appear to be exiting and that looks like a good strategy right now."
Let's see if Tuesday's activity changes anything.
In the updated Japanese candlestick chart of QS, below, we can see that the candle pattern for Monday and Tuesday could be a harami bottom reversal. This is similar to an inside day on a daily bar chart. There is a red candle Monday followed by a smaller white candle, suggesting that the trend has turned from down to sideways. Confirmation of the reversal is needed Wednesday. This reversal, should it happen, may only mean we see prices move sideways rather than a turn upward.
The OBV line has turned lower and price momentum is weakening.
In this updated daily Point and Figure chart of QS, below, we can see that a trade at $55 could weaken the picture and precipitate further declines.
Bottom-line strategy: Continue with a cautious stance.