In his first Executive Decision segment of "Mad Money" Friday, Jim Cramer spoke with Todd McKinnon, co-founder and CEO of Okta Inc. (OKTA) , a cybersecurity company.
McKinnon said Okta got its start providing workforce identity solutions, helping employees securely connect with their employer. But today, he noted, everyone is going digital and companies also need secure ways to connect with their customers. That's why Okta also has tools for companies to interact with their customers accurately and securely.
We last looked in on OKTA on July 22 and wrote at that time, "OKTA is still in an uptrend but there are a few signs of slowing in the advance. This might only translate into a pause or some sideways price action. I want to see how 'things develop' so I would not initiate new long positions here and not add to existing longs from lower levels. Raise stops to a close below $190 and let's see how prices move from here." Prices declined in August and again in September and traded below $190 but did not close below $190.
Let's check in again with OKTA to see what the charts say now.
In this updated daily bar chart of OKTA, below, we can see that prices broke out on the upside of a three-month consolidation pattern. Prices are above the rising 50-day moving average line and above the rising 200-day moving average line. The trading volume did not expand this month as it broke out to new highs. This is not what chart watchers want to see; we like to see strong volume on a breakout.
The On-Balance-Volume (OBV) line is close to making a new high for the move up, but as of last Friday it has lagged the price action and has not confirmed the price gains. The Moving Average Convergence Divergence (MACD) oscillator just crossed to the upside for a fresh outright buy signal after a correction from June.