Cord-Cutting FuboTV and Advertising Platform PubMatic Are Not Buys Here

Our look at the stocks of both FUBO and PUBM.

Jim Cramer told viewers of Mad Money Wednesday evening that he saw no reason to get excited about FuboTV (FUBO) or PubMatic (PUBM) at these levels.

Let's check out the charts of both stocks. 

In the daily bar chart of FUBO, below, we can see a "line pattern" around $10 for about five months before the shares turned higher in October. FUBO rallied six-fold in about two months before reversing direction. FUBO has been testing the rising 50-day moving average line this month but looks like it will break it at some point soon.

The trading volume has been very heavy since late November as prices declined suggesting that older longs were aggressively liquidating positions. The On- Balance-Volume (OBV) line shows a lot of weakness since late November telling us that sellers of FUBO have been more aggressive.

The Moving Average Convergence Divergence (MACD) oscillator is close to crossing the zero line for an outright sell signal. 

 

 

In the daily candlestick chart of PUBM, below, we do not have much history to work with. Prices have shot higher recently but notice the upper shadow today telling us that traders have rejected the highs.

 

The trading volume has not really expanded which is something you want to see with a recent IPO. The OBV line and the MACD oscillator are pointed up but a quick reversal cannot be ruled out. I would look for a pullback to the $30 area.  

 

 

 

Bottom-line strategy: FUBO and PUBM may eventually become buys but not here and not now.

 

Employees of TheStreet are prohibited from trading individual securities.