For his second Executive Decision segment of last Friday's "Mad Money" program, Jim Cramer spoke with Dax Dasilva, founder and CEO of Lightspeed POS (LSPD) , a small business commerce software platform.
Dasilva admitted that commerce technology is a crowded space, but said Lightspeed competes by moving beyond just point-of-sale systems to be a one-stop shop for all a business's commerce needs. Over the past two years, commerce has changed rapidly, he said, and businesses need delivery, e-commerce, appointment setting and even supply chain management functionality.
That's why Lightspeed has been making acquisitions to bring all the best-of-breed players together under one roof and into one unified platform that its customers love, Dasilva said.
Let's check out the charts of LSPD.
In this daily bar chart of LSPD, below, we can see that prices traded sideways from December until late June, when they finally broke out on the upside. Trading volume has been active and volume has increased since late April, when prices began to rally. LSPD is trading above the rising 50-day and 200-day moving averages. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of LSPD, below, we can see the entire history of trading. The latest candle bar is a possible bearish hanging man pattern, but a bearish candle this week is needed for confirmation. Prices are in an uptrend above the rising 40-week moving average line. Trading volume has expanded with the uptrend. The weekly OBV line is very strong and bullish. The MACD oscillator has just crossed to the upside for a new buy signal.
In this daily Point and Figure chart of LSPD, below, we can see the software is projecting a possible downside price target around $70. A trade at $89 will refresh the uptrend.
In this weekly Point and Figure chart of LSPD, below, we can see a potential $107 price target.
Bottom line strategy: LSPD may trade sideways a bit longer and that is OK. This sideways price action would allow traders to probe the long side of LSPD around $85. Risk to $71. The $107 area is our first price target.