For his final Executive Decision segment of Monday's "Mad Money" program, Jim Cramer checked in with Mark McClain, co-founder and CEO of SailPoint Technologies Holdings Inc. (SAIL) , a cybersecurity company.
McClain said SailPoint's identity management technology goes beyond just making it easier for employees to log into their work platforms. He said SailPoint's governance platform also looks at what systems employees should have access to and whether they're supposed to be logging in at all.
Let's check out the charts and indicators of SAIL.
In this daily bar chart of SAIL, below, we can see that prices have tripled since the March low. Impressive. Prices gapped higher on heavy trading volume the other day, continuing the uptrend. SAIL is above the rising 50-day moving average line and the rising 200-day moving average line. In late June we can see a bullish golden cross of these two lagging indicators.
The On-Balance-Volume (OBV) line has been rising since October to tell us that buyers of SAIL have been more aggressive. Notice the slight dip in the OBV line in March, which suggests that holders of SAIL did not liquidate positions during the decline. The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in early May for an outright buy signal and just recently turned upward for another buy message.
In this weekly bar chart of SAIL, below, we can see that prices declined from the middle of 2018 to March 2020 in a downward sloping channel. Prices broke that downtrend in May or June and the slope of the 40-week moving average line has turned positive. The weekly OBV line has been rising the entire time and tells a bullish story of serious accumulation (buying). The MACD oscillator turned bullish in June.
In this Point and Figure chart of SAIL, below, we used daily price data. The software is projecting a potential upside price target in the $54 area.
Bottom line strategy: Traders could go long SAIL around $36, risking a close below $32 for now. The $54 area is our price objective.
