During Thursday's fast-paced Lightning Round segment of the Mad Money program one caller asked Jim Cramer about Poshmark (POSH) . "I like Poshmark. I think it's a great idea. I'd hold onto it," replied Cramer.
When we looked at POSH on Aug. 12, we wrote that "POSH is in a downtrend and pointed lower. Avoid the long side of POSH."
Let's visit the charts again.
In the updated daily Japanese candlestick chart of POSH, below, we can see that the shares are still pointed lower. The candles are mostly red (bearish) and the slopes of both the 20-day and 50-day moving averages are negative.
The On-Balance-Volume (OBV) line remains weak and the 12-day price momentum study has yet to display a bullish divergence.
In this Point and Figure chart of POSH, below, we can see that the software is projecting the $25.45 area as a potential price target. This does not mean that prices cannot fall further but it may suggest to technically oriented traders that they might want to cover shorts.
Bottom-line strategy: I listen to the fundamentals but I prefer to see the charts tell us a bullish story. So far POSH has not yet given me a reason to become a buyer.
