For his "Executive Decision" segment of Mad Money Friday night, Jim Cramer spoke with Todd McKinnon, CEO of Okta Inc. (OKTA) , the cybersecurity company with sales up 50% this quarter. The shares rallied 6.2% by the close Friday, but are softer Monday morning.
McKinnon said Okta has over 6,500 customers across the globe and they're working hard to protect each and every one. One of those customers is Major League Baseball.
The CEO explained many of their customers need a simple, yet secure, user experience. When asked why Okta's service is in such high demand, McKinnon said in the old world, companies had firewalls and everything inside the firewall was trusted. But that's no longer the case and digital identities need to be secure no matter where they originate from.
Let's check the charts of OKTA.
In the daily bar chart of OKTA, below, we can see prices have easily doubled in the past twelve months. Prices are above the rising 50-day moving average line after several successful tests of that line in March and early April. OKTA is also above the rising 200-day line.
The pattern of volume shows a number of surges, but overall the daily On-Balance-Volume (OBV) line shows a bullish trend the past twelve months. The OBV line rises only when the trading volume is heavier on days when OKTA closes higher.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is pointed down in a take profits mode, but the oscillator looks poised to turn upward again.
In the weekly bar chart of OKTA, below, we can see that prices have tripled in the past two years -- impressive. OKTA is above the rising 40-week moving average line; maybe too far above it.
The weekly OBV line has been rising since December, and has made new highs along with prices, so no divergence from this indicator.
The weekly MACD oscillator show a strong bullish rise, too.
In this point and figure chart of OKTA, below, we can see a potential upside price target of $147.
Bottom-line strategy: OKTA is becoming unique -- a stock still in an uptrend. Maintain longs with a sell stop below $100. The next potential upside price target: $145-$150.