For his second Executive Decision segment of "Mad Money" Tuesday, Jim Cramer spoke with David Meridith, CEO of Everbridge Inc. (EVBG) , a provider of critical communications software with first-quarter sales up 38% year over year.
Meridith said Everbridge is supporting agencies and first responders with critical communications and other services such as its newly announced Return To Work solution. The service helps large companies manage differing requirements across locations and provides employees with wellness communications, contact tracing and other critical notifications.
Everbridge is also working with the state of Vermont to help inform voters of new procedures for physical distancing and remote voting options.
Cramer said Everbridge is the right company for this moment in our history.
Let's check the charts to see if they are at the right moment to buy.
In this daily bar chart of EVBG, below, we can see that prices have made a choppy sideways trading pattern since late February. This pattern is preferred over a huge decline that you can find on way too many charts. Prices have tested the rising 50-day moving average line a number of times over the past nine weeks. The rising 200-day moving average line was last tested in December. Trading volume has been more active since late February and that suggests more interest from traders and investors.
The daily On-Balance-Volume (OBV) line has been in an uptrend from late September, telling us that buyers of EVBG have been more aggressive for a long time now. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a take profits sell mode but could turn positive again if prices rally from here.
In this weekly bar chart of EVBG, below, we can see that prices have been in a long (three years) and durable uptrend. Declines to and tests of the rising 40-week moving average line have been buying opportunities. The weekly OBV line has been strong the past three years and only shows a minor decline the past two months. The MACD oscillator is bullish.
In this first Point and Figure chart of EVBG, below, we used daily price data and here the chart suggests we could correct lower to the $91 area.
In this second Point and Figure chart of EVBG, below, we used weekly close-only data and here the software is projecting a potential longer-term target in the $160 area.
Bottom line strategy: Traders could go long EVBG at current levels, risking below $100 for now. Add to longs only on strength. The $160 area is our target for later this year.
