For one of his Executive Interviews during Friday night's Mad Money program, host Jim Cramer checked in with Anders Gustafsson, CEO of Zebra Technologies Corp. (ZBRA) , the barcode and logistics company that helps items get to where they need to go.
Gustafsson said that Zebra is seeing an uptick in the grocery industry and helping operations all over the country scale up efficiently to meet demand. When asked about our nation's medical supplies, Gustafsson said that Zebra has products and services to help with asset management and tracking as well as workflow systems.
Let's check out the charts to see when and where they will arrive.
In the daily bar chart of ZBRA, below, we can see that prices topped out back in December around $260 (notice the volume spike?) before plunging down to around $150 in the first half of March. ZBRA rebounded about $50 and has quietly declined in recent sessions in what I would call a legitimate "retest" of the March low.
The On-Balance-Volume (OBV) line also peaked back in late December and has declined into the middle of March. The OBV line looks like it is trying to base. The slopes of both the 50-day moving average line and the 200-day moving average line are negative and we can see a recent (and belated) sell signal via a death cross of these two average lines.
The Moving Average Convergence Divergence (MACD) has struggled to improve after a cover shorts buy signal last month.
In the weekly bar chart of ZBRA, below, we see a mixed picture. Yes, ZBRA has been in a longer-term uptrend looking back three years but we can also see a weakening beginning from April 2019.
The OBV line turned down in April 2019 and the MACD oscillator made a peak. Even though prices went to a higher high in 2020 neither the OBV nor the MACD oscillator confirmed that new price high. ZBRA is below the declining 40-week moving average line. The OBV line has made a new low for the move down and the MACD oscillator is very bearish on this longer time frame.
In this daily Point and Figure chart of ZBRA, below, we can see that the software is projecting a potential downside price target in the $153 area. A trade at $199.42 is needed to turn this chart bullish.
Bottom-line strategy: Because the charts and indicators of ZBRA are mixed and the Point and Figure chart suggests a retest of the March nadir is possible, traders and investors could just watch the stock for now. I want to see how things "develop" on this stock before making a recommendation.