During Thursday's Lightning Round segment of Mad Money one caller asked Jim Cramer about GoodRx Holdings Inc. (GDRX) . "I think they're having a great quarter and I like them very much," replied Cramer.
We reviewed the charts of GDRX back on Oct. 7. We wrote then that, "I have often said that IPOs create problems for chart readers in that there is little information to evaluate. GDRX will not stay in a tight range for long. Traders who are comfortable dealing with IPOs could look to the long side risking a close below $46."
Unfortunately prices gapped lower around the middle of October and traders who risked a close below $46 were burned. How do the charts look now?
In the updated daily Japanese candlestick chart of GDRX, below, we can see that prices managed to recover and fill the October gap by late December. Prices drifted lower into early January and then traded sideways.
Trading volume has dried up and the On-Balance-Volume (OBV) line is flat and the Moving Average Convergence Divergence (MACD) oscillator is also flat and hugging the zero line.
