A caller during Wednesday's Lightning Round segment of Mad Money was interested in Zynga Inc. (ZNGA) . "They're making a comeback. The gaming industry is strong. I think you're OK," responded Jim Cramer.
Let's check out the charts of this video game developer.
In the daily bar chart of ZNGA, below, we can see that prices traded sideways around $6.25 for several months before starting a rally phase in late March. Prices are above the rising 50-day moving average line and above the rising 200-day moving average line.
Trading volume has been more active since the beginning of the year but the On-Balance-Volume (OBV) line is not showing much in the way of aggressive buying.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory but looks like it has slipped to a take profits sell signal.
In this Point and Figure chart of ZNGA, below, we can see a potential upside price target around $18. Not bad.