• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

RingCentral's Deal Gives Its Charts a Bullish Chime

Here's how we would trade RNG shares following the Avaya news.
By BRUCE KAMICH
Oct 04, 2019 | 02:10 PM EDT
Stocks quotes in this article: RNG, AVYA

RingCentral Inc. (RNG) made a huge upside price gap and a high/low trading range Friday. Avaya (AVYA) and RingCentral (RNG) are in talks for a strategic partnership as Avaya moves away from the idea for a full sale of the company, according media sources. Let's take a look to see what that news has done to our charts and indicators and what new price targets may be readable.  

 
In the daily bar chart of RNG, below, we can see that prices were in a downtrend the past four weeks or so and were retesting the $130 support area. RNG was between the rising 50-day moving average line and the rising 200-day line.
 
The On-Balance-Volume (OBV) line shows only a modest decline the past two months so sellers were not too aggressive and caught wrong-footed or even short ahead of Friday's news. The Moving Average Convergence Divergence (MACD) oscillator has quickly crossed to the upside for a cover shorts buy signal and likely a new buy signal in the next few days.  
 
 
In the weekly bar chart of RNG, below, we can see that prices have had a tremendous upside move the past three years. Prices are above the rising 40-week moving average line.
 
The weekly OBV line is likely to turn up again after declining the past two months. The MACD oscillator is in a take profits sell mode but Friday's strength is likely to make that signal reverse.
 
 
In this Point and Figure chart of RNG, below, we do not have a price gap and the move up has opened the way to a potential longer-term price target of $265 for RNG. 
 

Bottom-line strategy: Aggressive traders could try to buy RNG around $155. Risk below $145. Our price targets are $200 and then $265.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Technology | Technology Hardware & Equipment | Telecom Services

More from Stocks

2 More Covered Call Opportunities That Are Calling Investors

Bret Jensen
Jan 25, 2021 8:30 AM EST

Here are options plays involving promising small-caps Clearside Biomedical and Mustang Bio.

Momentum Is Proving More Powerful Than Overbought Readings

James "Rev Shark" DePorre
Jan 25, 2021 7:44 AM EST

Comments about how unsustainable the current market action is are hitting all-time highs, but strong, speculative trading is winning out for now.

Volatile Road Ahead, 4 Market Impact Thoughts, Monster Earnings Week

Stephen Guilfoyle
Jan 25, 2021 7:32 AM EST

What can be done? Well for one, we are going to have to be creative. Jay, and Janet, I need you both paying attention here.

ATO, the Perfect Stock for Nervous Traders?

Paul Price
Jan 25, 2021 7:00 AM EST

Here's how to play Atmos Energy, which is among the very best of all natural gas utilities.

Debt-Laden Chinese Electric Car Company Shares Soar

Alex Frew McMillan
Jan 25, 2021 7:00 AM EST

Property developer China Evergrande has seen shares in its electric car unit skyrocket before it enters commercial production.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:04 AM EST GARY BERMAN

    Monday Morning Fibocall for 1/25/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I discuss price targets in my Saturday column.
  • 07:54 AM EST GARY BERMAN

    Friday Morning Fibocall for 1/22/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login