In his second Executive Decision segment of "Mad Money" Monday, Jim Cramer sat down with Alan Trefler, founder, chairman and CEO of Pegasystems Inc. (PEGA) , the cloud-based software integrator.
Trefler said customers are looking to streamline their work and save money, which is what Pegasystems allows them to do.
When asked about the coronavirus and how it might affect Pegasystems's annual conference in June, Trefler said the company is staying agile with its plans. Let's be agile and look at the charts.
In this daily bar chart of PEGA, below, we can see that prices have been in an uptrend the past 12 months. PEGA recently pulled back to retest the rising 50-day moving average line. The rising 200-day moving average line was successfully tested in October and November. The On-Balance-Volume (OBV) line shows a rise over the past year, which tells us that buyers of PEGA have been more aggressive. The OBV line has declined in the latter half of February but the uptrend is still intact. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed to a take-profits sell signal.
In this weekly bar chart of PEGA, below, we can see that prices have been in a strong uptrend from December 2018. Prices were in a wide consolidation pattern for about two years before the uptrend got under way. The weekly OBV line has moved up with the price action from December 2018 and made a new bullish high for the move up. The MACD oscillator has been bullish since early 2019, but the two moving averages that make up this indicator have begun to narrow, telling us that the trend strength is weakening a bit.
In this Point and Figure chart of PEGA, below, we used daily price data to generate the X's and O's. A downside price target in the $85-$84 area is shown.
Bottom line strategy: PEGA may or may not reach its nearby price target. I would like to see prices hold around $90 or so, telling me that buyers are being a little aggressive in their purchases.