In an "Executive Decision" segment of Mad Money Friday evening, Jim Cramer spoke with Avishai Abrahami, co-founder and CEO of Wix.com Ltd. (WIX) , the website creation platform. Shares of Wix are up 70% over the past month.
Abrahami said Wix continues to provide a lot more than just great looking websites. All of their services have been in high demand since the pandemic started.
Abrahami said he wouldn't give governments high marks for how they've handled the pandemic when it comes to small business, but he would give those businesses themselves an A+ for their innovation and drive to survive. Wix saw 3.2 million new customers in the month of April.
Let's see how the charts look.
In the daily bar chart of WIX, below, we can see that prices were just about cut in half from February to around the middle March and have since exploded on the upside. Prices quickly crossed above the moving averages and their slopes have turned positive.
Trading volume has soared this month as investors and traders have flocked to this name. The daily On-Balance-Volume (OBV) line soared to a new high telling us that buyers of WIX have been very aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator turned bullish last month when it moved above the zero line. No weakening seen from this indicator.
In the weekly bar chart of WIX, below, we can see that prices broke out on the upside from a broad trading range market that goes back to the middle of 2018. Prices have nearly doubled from the central area of this pattern. WIX is above the rising 40-week moving average line.
The weekly OBV line is pointed up and close to breaking out of its own sideways pattern. A new high from the OBV line will be strong confirmation of this rally. The weekly MACD oscillator crossed back above the zero line for an outright buy signal.
In this Point and Figure chart of WIX, below, we can see the straight-up rally. The chart is indicating a potential price target in the $265 area.
Bottom-line strategy: Aggressive traders could try to buy WIX in the $200-$190 area risking a close below $170. Our Point and Figure target is $265 for now.