MongoDB (MDB) is a "document database used to build highly available and scalable internet applications." The stock price of the company made a huge upside price gap last Friday on a strong first-quarter earnings and revenue beat along with strong second-quarter guidance.
Let's check out the charts and indicators for clues to its next move.
In this daily bar chart of MDB, below, I can see that the shares made lows in the November/December time frame and then turned higher. Prices began to rise in January and then rallied strongly in May ahead of their earnings report. MDB trades above the rising 50-day moving average line and above the still declining 200-day line.
The On-Balance-Volume (OBV) line shows a smooth rise from December and tells me that buyers of MDB are more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of MDB, below, the price gap in the bar chart disappears. MDB trades strongly above the declining 40-week moving average line.
The weekly OBV line is strong. The MACD oscillator broke above the zero line last month for an outright buy signal.
In this daily Point and Figure chart of MDB, below, I can see the huge rally of last week with no price gaps. An upside price target in the $447 area is being projected.
In this weekly Point and Figure chart of MDB, below, I used a five-box reversal filter, which projects a price target of $403 for now.
Bottom-line strategy: Since its strong upside price gap on Friday, MDB has traded firm with little downside "give." Aggressive traders with deep pockets could go long MDB at current levels. Risk to $360 for now. My price target for now is $447.
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