In his first "Executive Decision" segment of Tuesday's Mad Money program, Jim Cramer spoke with Whitney Wolfe Herd, founder and CEO of Bumble (BMBL) , the woman-focused dating app.
Wolfe Herd said that Bumble should not be looked at as a Covid stock or as a reopening stock. People need love and connection no matter which Covid variant is circulating. Bumble adapts to the changing conditions and their users shift between online dating and in-person events as their area allows.
The Internet can be a dangerous place, Wolfe Herd added, which is why Bumble was built with accountability, trust, respect and inclusivity for all members. They lean into machine learning to deliver a safer, better experience than other platforms.
Video chat is also integral to Bumble, and users are utilizing this feature to vet prospective dates and, if needed, to have entire dates if the parties can't be together in person.
Let's do an in-person check of the charts and indicators.
In the daily bar chart of BMBL, below, we can see that the shares have had a bearish ride lower since going public in February. The shares are trading below the declining 50-day moving average line and below the declining 200-day line.
The trading volume shows some increases at lows and highs so it is hard to draw conclusions from it. The math-driven On-Balance-Volume (OBV) line has generally moved in the same direction as prices have. Prices made new lows in November and December but the OBV line has not made a new low. This is a bullish divergence but it may not be significant.
The 12-day price momentum study is not showing us any slowing in the decline.
In the weekly Japanese candlestick chart of BMBL, below, we can see a bullish engulfing pattern at the end of November and the beginning of December. This bottom reversal pattern still needs bullish confirmation but it has my attention. The 40-week moving average line is bearish.
The weekly OBV line is pointed lower but we do see the 12-week price momentum study improving.
In this daily Point and Figure chart of BMBL, below, we can see that the software is generating a potential upside price target of $55.
In this weekly Point and Figure chart of BMBL, below, we see a bearish price target for now.
Bottom-line strategy: True traders who have some experience might consider going long BMBL for a trading bounce. A stop at a new low (just below $30) is very important and I would be happy on scalping $10 or $15. Do not overstay your welcome.
