In his Executive Decision segment of Wednesday's "Mad Money" program, host Jim Cramer spoke with Tomer Weingarten, co-founder and CEO of SentinelOne Inc. (S) , a cybersecurity company that on Wednesday reported first-quarter results that beat expectations.
Weingarten said SentinelOne continues to take market share from incumbent players. He said companies are demanding operational security in the cloud and they need vendors that can deliver.
Weingarten said SentinelOne has ample cash on its balance sheet to keep taking market share, and thanks to its improving gross margins its growth can continue.
Let's check out the charts and indicators.
In this daily bar chart of S, below, we can see a mixed picture. Prices are in a downward trend from November. S trades below the negatively sloped 50-day moving average line and below the declining 200-day line. The trading volume has picked up from December. The On-Balance-Volume (OBV) line shows a decline into March followed by a move higher with a higher low in May. The higher low is a bullish divergence when compared to the price action, which was a lower low. The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In this weekly Japanese candlestick chart of S, below, we can see an OK-looking hammer pattern in early May with confirmation. Trading volume has diminished into May and the OBV line is still in a decline. The MACD oscillator is bearish but has begun to narrow.
In this daily Point and Figure chart of S, below, we can see the software has projected an upside price target in the $37 area.
In this weekly Point and Figure chart of S, below, the count is bearish with a target of $8.
Bottom line strategy: Aggressive traders looking for a short-term idea could go long S at current levels risking to $19. A rebound rally to the $37 area could unfold in the next few weeks.