Okta Inc. (OKTA) reported fourth-quarter results that beat estimates here on Thursday morning and its share price is surging higher. Let's check the charts and indicators of the cloud security company to see how to play Okta's stock.
In this daily bar chart of OKTA, below, I can imagine a positive picture as prices appear poised to open above the bottoming 200-day moving average line. The trading volume has been more active from September, suggesting increased investor interest in the stock.
The On-Balance-Volume (OBV) line shows strength from early November. The Moving Average Convergence Divergence (MACD) oscillator is near the zero line but should turn higher in reaction to today's strength.
In this weekly Japanese candlestick chart of OKTA, below, I see a mixed picture. Prices should rally above the 40-week moving average line today but its slope has not turned positive. The weekly OBV line shows improvement but with a dip in February. The MACD oscillator has been improving for a long time but still remains below the zero line.
In this daily Point and Figure chart of OKTA, below, I see a downside price target but a trade at $83 should refresh the uptrend. Strength above $83 will impress me should it happen.
In this weekly Point and Figure chart of OKTA, below, I can see a potential upside price target in the $107 area.
Bottom line strategy: The charts of OKTA are looking better, but in this current weak environment for equities I am not in the mood to chase strength. Let's revisit the charts of OKTA again in a few weeks.
