James highlighted Domo's involvement tracking the Covid-19 crisis. He said they maintain a national dashboard of cases on their website which is powered by real-time data. Domo also works with the state of Utah, compiling data from multiple sources to track the state's supply of beds, ventilators and protective equipment.
Let's check out the charts of DOMO.
In the daily bar chart of DOMO, below, we can see a bearish trend in price the past 12 months. Prices were trading around $40 back in April and May and then they declined to the $8 area in March of this year. This kind of large decline for a stock tends to require a significant base-building process before you see the shares rally in a sustained manner. Prices are below the declining 50-day moving average line and the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line shows a pattern of lower highs the past year suggesting that sellers of DOMO have been more aggressive for months.
The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line for much of the past year and that tells us that the trend has been weak. Recently we can see a crossover to the upside for the MACD oscillator which is a cover shorts buy signal.
In the weekly bar chart of DOMO, below, we can see the activity of almost two years. The downtrend from early 2019 is even more dramatic than what we saw on the daily chart above.
The 40-week moving average line is bearish and the weekly OBV line has been in a decline from March 2019. The weekly OBV line shows a possible bullish divergence now as it did not make a new low when prices made their new lows this year.
The weekly MACD oscillator is in a clear sell signal on this time frame.
In this daily Point and Figure chart of DOMO, below, we can see some accumulation (buying) on the chart as the software has generated a potential upside price target around $19.
Bottom-line strategy: While DOMO did make a recovery rally from October to February that is no guarantee that prices can rally back to $19 based on the Point and Figure chart. DOMO needs to build a fresh base pattern before I would find it an attractive long idea. Avoid.