For his final Executive Decision segment of Wednesday's "Mad Money" program, Jim Cramer checked in with Manish Chandra, founder, chairman and CEO of Poshmark (POSH) , the online marketplace.
Chandra said while results dipped from last year, Poshmark still delivered strong results over a two-year basis. The company also is seeing an uptick in active users, Chandra said.
When asked about increased competition, Chandra was confident Poshmark's social and community aspects, along with its simple fee structure, is building long-term relationships with their sellers.
In this daily bar chart of POSH, below, we can see that prices fell after Poshmark reported its second-quarter results on Tuesday. POSH is trading below the declining 20- and 50-day moving average lines. The daily On-Balance-Volume (OBV) line has been in a decline all year, telling us that sellers of POSH have been more aggressive. The 12-day price momentum study is showing us a bullish divergence as downside price momentum has not slowed.
In this daily Point and Figure chart of POSH, below, we can see a downside price target in the $25 area.
In this weekly close-only Point and Figure chart of POSH, below, we can see the software is projecting a tentative downside price target in the $15-$14 area.
Bottom line strategy: POSH is in a downtrend and pointed lower. Avoid the long side of POSH.