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.