Monday night during his Mad Money program Jim Cramer opted to drop some companies from his Covid-19 index in favor of others. One company Cramer added was the content delivery network firm, Fastly Inc. (FSLY) .
Let's check out the charts and indicators.
In this daily Japanese candlestick chart of FSLY, below, we can see a tremendous rally from the March low. Prices are well above the rising 50-day moving average and extended above the rising 200-day moving average line. If you look at the recent candle patterns you will see a large bearish engulfing pattern on Monday but there is no bearish confirmation so far Tuesday.
The On-Balance-Volume (OBV) line shows a strong rise the past 12 months telling us that buyers of FSLY have been more aggressive. This helps to confirm the dramatic price gains.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish in April and the indicator is still bullish but it has narrowed slightly in recent days.
In this weekly close only Point and Figure chart of FSLY, below, we can see a potential, longer-term price target of $215.
Bottom-line strategy: Yes, FSLY is extended when compared to the 200-day moving average line, but the strong rise in the OBV line and the MACD oscillator suggests the advance is justified. Aggressive traders could go long at current levels if they can risk a close below $70.