During Wednesday's Lightning Round segment of Mad Money one caller asked Jim Cramer what he thought of 23andMe (ME) : "I think this stock should be higher," said Cramer.
Let's check out charts of the consumer genetics company.
In the daily bar chart of ME, below, we can see that the stock has lost a lot of "ground" since it peaked in February. Prices have moved lower and trade below the declining 50-day moving average line.
The On-Balance-Volume (OBV) line shows weakness from February as sellers of ME have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line, telling us that the trend is bearish.
In this weekly Japanese candlestick chart of ME, below, we see a less-than-promising picture. Recent candles are red or bearish.
The OBV line is weak and so is the MACD oscillator.
In this daily Point and Figure chart of ME, below, we can see that the shares have reached a downside price target.
In this weekly Point and Figure chart of ME, below, we can see a downside price target of $6.79.
Bottom-line strategy: Aggressive traders could go long ME on a successful test of the August low.