During the "Lightning Round" segment of Mad Money Thursday night, one caller asked Jim Cramer about Cardlytics (CDLX) : "This looks like the right price to buy into this one," said Cramer.
Let's check the charts of this purchase intelligence platform that lets marketers reach consumers in their online and mobile banking channels.
In this daily bar chart of CDLX, below, we can see that the price of CDLX was cut down sharply in February and March. Prices retested the March low in early April and have since worked higher. CDLX is now above the rising 200-day moving average line and above the bottoming 50-day moving average line.
The daily On-Balance-Volume (OBV) line is back up to its February high and poised, I think, to make a new high for the move up.
The Moving Average Convergence Divergence (MACD) oscillator is just now crossing the zero line for an outright buy signal.
In this weekly bar chart of CDLX, below, we don't have a lot of price history but what we see is bullish. Prices are above the rising 40-week moving average line.
The weekly OBV line made only a shallow decline in February/March and is now up at a new record high, probably foreshadowing further gains.
The MACD oscillator is narrowing towards a cover shorts buy signal.
In this daily bar Point and Figure chart of CDLX, below, we can see an upside price target of $70. This is not a new high but it is going in the right direction.
Bottom line strategy: Traders could go long CDLX at current levels risking below $40. The $70 area is our first price target.
