In his first "Executive Decision" segment of Mad Money Friday night, Jim Cramer checked in with Anders Gustafsson, CEO of Zebra Technologies Corp. (ZBRA) , one of the companies helping to prepare millions of doses of vaccines for distribution around the globe.
Gustafsson explained that Zebra is no longer just a barcode company. Their technology is already playing a vital part in the fight against Covid-19, including helping to track test samples around the globe.
Zebra is gearing up for the coming global vaccine distribution with innovative products like labels that change color based on temperature exposure. Using Zebra's labels, the entire logistics chain can tell at a glance whether vials, boxes and pallets are properly cared for as they move around the world.
Really interesting, but let's check the price charts and technical indicators.
In the daily Japanese candlestick chart of ZBRA, below, we can see that the shares have more than doubled from the March nadir. ZBRA is trading above the rising 50-day moving average line and looks extended (overbought) versus the rising 200-day moving average line, which intersects down around the $255 area.
The On-Balance-Volume (OBV) line shows a very slowly rising line from March, which tells us that buyers of ZBRA have been quietly more aggressive for months. The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line in bullish territory but has narrowed to the point of crossing to the downside. Keep an eye on this indicator.
In the weekly bar chart of ZBRA, below, we can see upper shadows above $360 or so. This tells us that traders are rejecting the highs as prices close off their best levels of the week. The 40-week moving average line has a positive slope.
The weekly OBV line shows a decent rise from March but does not confirm the price highs with its own new high. The MACD oscillator is bullish.
In this daily Point and Figure chart of ZBRA, below, we can see the bullish new high for the move up and a potential price target of $431.
Bottom-line strategy: ZBRA shares are pointed up but there are some things about the indicators -- daily and weekly -- that suggest a sideways to lower price correction could unfold in the weeks ahead. I can't put my finger on it but I would recommend a "close to the vest" strategy.