Here's what Jim Cramer had to say about Cloudflare (NET) , one the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening: "They are doing a great job and they're fantastic," Cramer told the caller.
Let's check out the charts of NET.
In the daily bar chart of NET, below, we can see that the shares made a sideways consolidation pattern from December to May before breaking out on the upside. Prices have reached new highs as they trade above the rising 50-day moving average line and the rising 200-day moving average line.
The trading volume has not expanded in recent months but the On-Balance-Volume (OBV) line has made a new high to confirm the price gains in recent weeks. The Moving Average Convergence Divergence (MACD) oscillator looks like it is crossing to the downside for a take profits sell signal.
In the weekly Japanese candlestick chart of NET, below, we can see two recent candles with very small real bodies (the distance from the open to the close). This tells us that prices are largely in balance between bulls and bears. This balance can be a reversal pattern if we get bearish confirmation. The slope of the 40-week moving average line is positive.
The weekly OBV line has made a new high for the move up and the MACD oscillator is bullish.
In this daily Point and Figure chart of NET, below, we can see that the shares have nearly reached a price target in the $111 area. Technically oriented traders who use Point and Figure charts may be inclined to take profits here. A trade at $102.38 is likely to weaken the picture.
In this weekly Point and Figure chart of NET, below, we can see a $135 price target.
Bottom-line strategy: The charts and indicators of NET are mostly bullish but weakness in the broader market could turn the trend sideways. Raise stops on longs to $99.