During Thursday night's fast paced Lightning Round of Jim Cramer's Mad Money program on CNBC, Jim responded to a query on YY Inc. (YY) , a Chinese live-streaming social media platform. "I don't like the stock. Let's take a pass."
Let's check out the charts and indicators.
In this daily bar chart of YY, below, we can see what appears to be a saucer base pattern, but let's look closer. Prices do look like they have based. They are trading above the rising 50-day moving average line and have held above the still declining 200-day line.
Trading volume does jump sharply earlier this month, but the overall pattern of volume from August does not exactly fit the pattern I like to see on a saucer - heavier on the left side of the pattern, drying up in the middle, and then increasing on the right side of the base.
The daily On-Balance-Volume (OBV) line shows a decline from June to November, and then only a weak crawl higher into March. Perhaps the right shape for a base, but investors are not voting with their feet.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in January for a buy, but it looks like it could turn lower again.
In this weekly bar chart of YY, below, we can see that prices are trying to hold above the declining 40-week moving average line.
The weekly OBV line is interesting in that it is in a downtrend from early 2018, and only very recently does it show a small "uptick."
The weekly MACD oscillator is still below the zero line, so no outright-buy signal here.
In this Point and Figure chart of YY, below, we can see a potential upside price target of $91, but that a decline to $77 would likely weaken this chart.
Bottom-line strategy: Jim and I are on the same page with YY -- the charts are not that compelling. Pass.