• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Slack Technologies Shows Some Potential Problems on Its Charts

Let's investigate the charts and technical indicators of WORK.
By BRUCE KAMICH
Oct 06, 2020 | 09:50 AM EDT
Stocks quotes in this article: WORK, MSFT

For his second "Executive Decision" segment of Mad Money Monday night, Jim Cramer spoke with Stewart Butterfield, co-founder and CEO of Slack Technologies (WORK) , the collaboration software provider that's been lagging many other cloud companies in recent months.

Butterfield admitted that after six years, it's still a little difficult to explain Slack to those who are not familiar with the platform. He said Slack moves company messaging out of the inbox and into channels where everyone can go to collaborate and catch up with what's going on. 

That customer loyalty and enthusiasm has propelled Slack through several years of viral growth, Butterfield added, but now the company is facing new competition from Microsoft (MSFT) and its collaboration offering, Teams.

Let's investigate the charts and technical indicators of WORK.

In the daily bar chart of WORK, below, we can see that prices have been in a downtrend from early June when prices gapped lower. WORK is trading right at the declining 50-day moving average line and "for now" just above the rising 200-day moving average line. I use the phrase "for now" because prices gapped to the downside again in early September.

The On-Balance-Volume (OBV) line shows a decline from early June and a flat trend the past two months telling me that buyers are not being aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator shows cover shorts buy signals in August and September but that is not an outright go long signal, unfortunately. 

 
In the weekly bar chart of WORK, below, we can only see the past 12 months of trading instead of our typical three years of data. The shares are trading right on the cresting 40-week moving average line.
 
The weekly OBV line shows a downtrend from the middle of May telling us that sellers turned aggressive ahead of the price peak in early June. The weak OBV line suggests that the price recovery in September is not likely to last long. The MACD oscillator shows weakness. 
 
 
In this daily Point and Figure chart of WORK, below, we can see the potential for a rally to the $31 area. 
 
In this weekly close-only Point and Figure chart of WORK, below, we can see a potential downside price target in the $24 area. 
 
 
 
Bottom-line strategy: The decline in the OBV line and prices since early June does not appear over yet. Prices could trade up to the $31 area based on the Point and Figure chart but without signs of aggressive buying. I would avoid the long side of WORK for now.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Software & Services | Mad Money | Executive Interview

More from Stocks

Hungry Traders and Stock Opportunities Aren't Likely to Go Away Soon

James "Rev Shark" DePorre
Jan 15, 2021 4:40 PM EST

It doesn't take much time for stocks with strong momentum to reset and continue on their way.

At What Price Is Ballard Power Systems a Buy?

Bruce Kamich
Jan 15, 2021 3:09 PM EST

Let's check out the latest charts of BLDP.

United Parcel Service Is Testing Key Support

Bruce Kamich
Jan 15, 2021 2:30 PM EST

A look at the charts of UPS.

A Buy and Hold Play With Hennessy Capital V

Timothy Collins
Jan 15, 2021 2:24 PM EST

HCICU hit the public markets today.

Jim Cramer: It's High Time to Call in the Covid Assassins

Jim Cramer
Jan 15, 2021 2:00 PM EST

Enroll the private sector that has the capability of vaccinating en masse and save the kingdom.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    When it's time to sell, will you act or freeze?
  • 08:35 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 1/13/2021

    Lower highs... SPX (Long-Term View) The 1/8/2...
  • 08:07 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/12/2021

    Watch if the recent trend of lower highs continues...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login