• 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

Zebra Technologies Could Correct in the Weeks Ahead

The shares have more than doubled from their March nadir.
By BRUCE KAMICH
Nov 23, 2020 | 11:55 AM EST
Stocks quotes in this article: ZBRA

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.

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 | Health Care Equipment & Services | Healthcare | Retail | Technology | Technology Hardware & Equipment | Mad Money | Executive Interview

More from Stocks

Cord-Cutting FuboTV and Advertising Platform PubMatic Are Not Buys Here

Bruce Kamich
Jan 21, 2021 2:59 PM EST

Our look at the stocks of both FUBO and PUBM.

Hyliion Should Keep Truckin'

Timothy Collins
Jan 21, 2021 2:49 PM EST

I see a good trade down the road in this commercial fleet alternative-power truck name.

Jim Cramer: You Just Won Powerball, Now What?

Jim Cramer
Jan 21, 2021 2:24 PM EST

Remember, you only need to get rich once.

Aim High With This Defensive Dividend Stock

Bob Ciura
Jan 21, 2021 1:40 PM EST

Lockheed Martin is a classic defense stock that also gives investors an offensive position.

A Day for Resets

James "Rev Shark" DePorre
Jan 21, 2021 1:08 PM EST

I'm more inclined to do strategic buying in this sort of market action rather than more aggressive selling.

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

  • 11:16 AM EST CHRIS VERSACE

    Worst Stocks to Buy for the Biden Presidency

    Biden's take on the minimum wage, likely moves on ...
  • 08:35 AM EST GARY BERMAN

    Thursday Morning Fibocall for 1/21/2021

    SPX (Long-Term View) The 1/20/21 NEW high @ 3859...
  • 11:38 AM EST CHRIS VERSACE

    Best Stocks to Buy for the Biden Presidency

    President-elect Biden's massive stimulus plan, int...
  • 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