Velodyne Lidar Is Pointed Lower Without Our Hands on the Wheel

Jim Cramer and I are on the same page.
Stocks quotes in this article: VLDR

During Tuesday's Lightning Round segment of Mad Money one caller asked about Velodyne Lidar (VLDR) . "No, no, you don't want to be in this one," Jim Cramer told the caller. The company has a product that is able to detect vehicles and people with precision and is being used in driverless cars.

Let's check out the charts of VLDR. 

In the daily bar chart of VLDR, below, we can see that the shares had a rapid run-up and an equally rapid decline. VLDR has closed below the declining 50-day moving average line and is likely to close under the 200-day moving average line today.

The trading volume has been "uneven" but the On-Balance-Volume (OBV) line peaked in early September and its decline tells us that sellers of VLDR have been more aggressive.

The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish. 

 
In this daily Point and Figure chart of VLDR, below, we can see a weak chart with a potential downside price target of only $3. 
 
 
 
 
Bottom-line strategy: Jim Cramer and I are on the same page with VLDR -- no, you do not want to be in this stock.
 
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TAGS: Investing | Stocks | Technical Analysis | Automobile Components | Technology | Transportation | Mad Money

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