In his first Executive Decision segment of last Friday's "Mad Money" program, host Jim Cramer spoke with Matt Roberts, CEO of Vacasa Inc. (VCSA) , a vacation rental platform that came public late last year via a special purpose acquisition company (SPAC) merger.
Roberts is no stranger to the technology sector, as he previously was CEO of OpenTable. He said Vacasa focuses on the supply side of vacation rentals, making it super easy for homeowners to rent out their vacation properties.
While vacation rentals became popular during COVID, Roberts said they're a lot more than just a pandemic story. Travelers prefer the comforts of home, he said, and they prefer Vacasa over staying at a hotel.
Let's check out the charts and indicators of Vacasa, which reported a fiscal fourth-quarter loss last week that was smaller than expected by analysts.
In this daily bar chart of VCSA, below, we can see a significant percentage decline from December to March. Prices have made two lows in February and March, but I would not consider it a double bottom. Strength above the February high will help, but the pattern is not large enough in time to suit me. Double bottoms are large patterns after a long decline and this looks like two lows after a short decline. Trading volume has been increasing since late January and that is a plus and the On-Balance-Volume (OBV) line is improving and that, too, is a plus. The trend-following Moving Average Convergence Divergence (MACD) oscillator is about to cross the zero line for a buy signal.
In this weekly Japanese candlestick chart of VCSA, below, we can see a mixed picture. The indicators are showing improvement like the daily chart above but we can see a number of upper shadows above $8.00, showing us that traders are rejecting those levels. A close above $8.50 is needed to show us that the picture is strengthening.
In this daily Point and Figure chart of VCSA, below, we see a potential upside price target of $13.
Bottom line strategy: iIn a stronger market environment I would recommend purchase of Vacasa, but the current status of the markets is keeping me sidelined on VCSA.
