For his "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with Bill Stone, chairman and CEO of SS&C Technologies Holdings Inc. (SSNC) , a financial software provider with shares off more than 31% from their highs due to the overall market meltdown.
Stone said that while some of the clients are slowing down their operations their software provides services like real-time profit-and-loss statements, allowing money managers to make decisions in real time as well. Stone said their Asian staff has been working from home for weeks now and they've only seen minimal degradation in their performance as a result.
Let's turn the charts for some technical guidance.
In the daily bar chart of SSNC, below, we can see the rapid decline since the zenith in February. Prices have broken down below both the 50-day moving average line and the 200-day moving average line. The slopes of both of these lagging indicators are now negative (bearish).
The daily trading volume has picked up in the past couple of weeks as traders vote with their feet. The On-Balance-Volume (OBV) line has turned lower with the price action telling us in a simple line chart that sellers are more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator generated a sell signal in late February when it crossed below the zero line.
In the weekly bar chart of SSNC, below, we can see a possible large double-top formation. Prices are below the now declining 40-week moving average line. The lows of 2018-2019 in the $45-$40 area are potentially next support. In this current market environment I would not expect traders to look to defend that area. Further declines are likely. A break of these lows opens the way to still further declines, in my opinion.
The weekly OBV line has turned down and the MACD oscillator is quickly moving below the zero line.
In this first Point and Figure chart of SSNC, below, we used daily price data. Here a potential downside price target in the $41.50 area is shown. If prices reach this target they have pretty much broken the "potential" support. Not a good sign.
In this second Point and Figure chart of SSNC, below, we used weekly price data. Here a more bearish price target of $27 is projected.
Bottom-line strategy: Avoid the long side of SSNC as the charts above suggest there could be further declines to $41.50 or even $27 in the days and weeks ahead.