In an "Executive Decision" segment of Mad Money Thursday night, Jim Cramer checked in with Frank Bisignano, president and CEO of Fiserv (FISV) , the financial technology company. The company has 100 million digital banking users and six million merchant locations across the globe.
There are many companies in this sector, Cramer said, but few of them are run by actual bankers that have a solid track record, like Bisignano does.
Let's check and see what sort of record the charts have.
In the daily bar chart of FISV, below, we can see that the shares have struggled to move higher the past 12 months. Prices are in an irregular uptrend but the corrections have been long and deep, in my opinion. The shares look like they have bottomed out in June and July and are trying to rally in August. FISV is trading above the rising 50-day moving average line.
The On-Balance-Volume (OBV) line has turned higher telling us that buyers of FISV are being more aggressive again. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory.
In the weekly Japanese candlestick chart of FISV, below, we can see the past three years of price history. FISV made a very deep correction in early 2020 as the world market's reacted to the pandemic's power to stop our economy. Prices briefly rallied to a new high in March and April of this year but the strength was not sustained. The shares have been trading around the rising 40-week moving average line.
The weekly OBV line has been in a slow decline since early 2020. The MACD oscillator is below the zero line in sell territory.
In this daily Point and Figure chart of FISV, below, we can see that the software is projecting the $144 area as a possible upside price target.
Bottom-line strategy: Traders could approach FISV from the long side risking to $108. The $144 area is our price target for late 2021/early 2022.