For his final "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer checked in Matthew Prince, co-founder and CEO of Cloudflare Inc. (NET) , the content delivery and cybersecurity network.
Prince said the pandemic has caused many companies to accelerate their digital transformation plans and Cloudflare is providing the services they need to manage their digital assets. They offer the tools companies need for privacy, cybersecurity, compliance and more.
Read more from Cramer's interview here.
Let's check out the charts of NET.
We last reviewed NET on June 22 and wrote that, "Continue to hold longs that have been recommended in previous reviews. Raise sell stop protection to a close below $30.50. The $62 area is our next price target after $39."
In the updated daily bar chart of NET, below, we can see that prices are making their third attempt to push through the $42-$44 area. The 50-day moving average and the 200-day moving average have positive slopes.
The On-Balance-Volume (OBV) line is bumping up against the highs of the past four months. The Moving Average Convergence Divergence (MACD) oscillator has just turned up for a new outright go long signal.
In the weekly bar chart of NET, below, we can see a bullish setup. Prices are poised to make a new weekly high close. The slope of the 40-week moving average line is bullish.
The MACD oscillator is ready to cross to the upside for a fresh buy signal.
In this daily Point and Figure chart of NET, below, we can see a $63 price target and that a trade at $46 is needed to refresh the uptrend.
Bottom-line strategy: Traders should continue to hold previously recommended long positions. Raise sell stop protection to $36 from a close below $30.50. The $63 area is our price target now. Aggressive traders with cash to put to work could add to longs above $46.
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