During the Lightning Round segment of Mad Money Friday night one caller asked Jim Cramer about StoneCo Ltd. (STNE) . "I like this stock very much," replied Cramer about the company providing an end-to-end cloud-based technology platform for merchants to conduct electronic commerce.
Let's check out the charts of STNE.
In the daily bar chart of STNE, below, we can see that prices bottomed out in March-May and started a rally with a gap higher that quickly broke above the highs of January and February. Trading volume surged up in late May and the On-Balance-Volume (OBV) line climbed into early August confirming and supporting the price gains. The OBV line has been declining since early August and suggests we are seeing scale up selling.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish in late May when it crossed the zero line to the upside. The oscillator has been correcting lower since early June.