For his second "Executive Decision" segment of Mad Money Friday night, Jim Cramer spoke with Rowan Trollope, CEO of Five9 (FIVN) , the virtual call center platform.
Trollope said the market is red hot and Five9 is no longer having to convince people they need to move to the cloud. Now is the time to rethink the customer experience, he said, and company after company is ditching the traditional phone tree for new cloud technologies.
Phone trees are just too limiting, Trollope noted, which is why the future is intelligent virtual assistants that use natural language to get you the information you need or route you where you need to go.
What do the charts say?
The last time we reviewed the FIVN charts was way back on Nov. 2, 2020 where we wrote that, "Raise stop loss protection to a $135. Our price targets are $177, the round number of $200 and then the new Point and Figure target of $224."
In this updated daily bar chart of FIVN, below, we can see that prices passed our $177 target and reached our $200 target in early March. I will assume that some traders have used that price strength to nail down some profits. FIVN has largely traded sideways this year and is currently below the declining 50-day moving average line. Prices tested the rising 200-day moving average line the other day.
The On-Balance-Volume (OBV) line made a peak in early March and shows a small amount of weakness. The Moving Average Convergence Divergence (MACD) oscillator has moved in a choppy fashion this past year and is currently below the zero line in sell territory.
In the weekly Japanese candlestick chart of FIVN, below, we see a mixed picture. We can see a bearish engulfing pattern at the end of April and the beginning of May. This is a top reversal pattern. Prices are still in a longer-term uptrend and are trading above the rising 40-week moving average line. There have been two successful tests of the 40-week line -- one in March and another this month.
The OBV line shows a peak in February with subsequent weakness. The MACD oscillator crossed to the downside in February and is still pointed lower in a take profit sell signal.
In this daily Point and Figure chart of FIVN, below, we can see that the software is giving us a potential downside price target in the $144 area.
Bottom-line strategy: FIVN has not made any upside progress since reaching our $200 price target. A stronger test of the 200-day line is possible and the daily Point and Figure chart is pointed down toward $144. Traders should sell their remaining longs or tighten their sell stops to $152.