For his final "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer checked in Jennifer Tejada, chair and CEO of enterprise software maker PagerDuty (PD) .
Tejada explained that as more companies make their digital transformations, digital operations management has become essential infrastructure. This has only grown in importance as employees began working remotely or in hybrid environments.
PagerDuty isn't just for technology outages, Tejada continued. The company's platform can notify key personnel about a whole host of issues.
When asked about her company's results, Tejada said growth remains a priority for PagerDuty, but they always grow in a measured and sustainable way.
Let's check out the charts of PD.
In the daily bar chart of PD, below, we can see that the shares are in a short-term downtrend and testing the rising 200-day moving average line. PD tested the 200-day line in March and that test was successful but the stock is trading below the declining 50-day line and this time prices may weaken further as opposed to rebounding.
The On-Balance-Volume (OBV) was steady in March but is showing weakness again and that tells us that sellers of PD are being more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved back to the zero line in April but has rolled over to the downside again.
In the weekly Japanese candlestick chart of PD, below, we see a picture that is tilting to the downside. The candles show upper shadows in April telling us that traders rejected those highs. Prices are testing the rising 40-week moving average line now and I think the odds have increased for a break of this indicator.
The weekly OBV line shows only modest improvement from March. The weekly MACD oscillator is pointed down towards the zero line.
In this daily Point and Figure chart of PD, below, we can see a possible downside price target in the $29 area.
Bottom-line strategy: The charts and indicators of PD are pointed lower. Avoid the long side for now. A retest of support in the $30-$25 is anticipated.
