We reviewed the charts of MongoDB (MDB) on March 7 and wrote that "the charts are bearish and I would avoid the long side." Prices have approached our first downside price target of $213 so let's take another peek at the charts.
In this updated daily bar chart of MDB, below, we can see that prices are trying to stabilize in the $225 area. MDB is trading below the declining 50-day and the bearish 200-day moving averages.
The daily On-Balance-Volume (OBV) line is pointed lower but has held above its early March low for a bullish divergence. The Moving Average Convergence Divergence (MACD) is below the zero-line but narrowing.
In this weekly Japanese candlestick chart of MDB, below, we can see two recent lower shadows telling us that some traders are rejecting the lows. The 40-week moving average line has rolled over. The weekly OBV line has been weak and the MACD oscillator is in a bearish alignment below the zero-line.
In this daily Point and Figure chart of MDB, below, we can see a new downside price target in the $151 area.
In this weekly Point and Figure chart of MDB, below, we can see a depressing price target of $0.
Bottom line strategy: MDB could stage a recovery rally if the broad market averages recover, but standing by itself, we are likely to see further declines in the months ahead. Continue to avoid the long side of MDB.
