In his second "Executive Decision" segment Thursday night on Mad Money, Jim Cramer sat down with Rowan Trollope, CEO of Five9 Inc. (FIVN) , the call center software provider with shares that popped 6.8% after the company reported strong earnings.
Trollope said Five9 is helping companies replace legacy call center systems with intelligent, modern ones that both they and their customers will love. Their systems help route customers to the right person quickly, ensuring the best possible outcomes.
Let's check out the stock's charts and indicators.
In the daily bar chart of FIVN, below, we can see that prices traded sideways for six months through July before gapping up to new highs. Prices tested the rising 200-day moving average line in October, November, June and July and every time turned out to be a buying opportunity. FIVN is above the rising 50-day line and of course the slower-to-react 200-day line.
The volume of trading has increased the past year and the On-Balance-Volume (OBV) line shows a rising pattern with a new high this month. A bullish OBV line tells us that buyers of FIVN have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish configuration.
In the weekly bar chart of FIVN, below, we can see how successful the 40-week moving average line has been over the past three years. Every dip toward or test of the rising moving average was the right time to buy.
The weekly volume has been rising the past twelve months to support and confirm the price gains. The weekly OBV line is positive and the MACD oscillator just crossed to the upside from above the zero line for a new outright buy signal.
In this Point and Figure chart of FIVN, below, we can see a potential upside price target of $89.25 being projected.
Bottom-line strategy: Our Point and Figure chart (above) suggests there is plenty of upside for FIVN. Traders could go long near $60 risking a close below $55. The $90 area is our price target.