For his second "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer spoke with Rowan Trollope, CEO of Five9 (FIVN) , the contact center provider with shares hitting new all-time highs this month.
Trollope explained that Five9 is a digital platform that connects businesses to their customers via chat, SMS and telephone.
Trollope said when Five9 surveyed their customers, 75% said they planned to continue to leverage remote workers after the pandemic.
Let's check out the charts.
In this daily bar chart of FIVN, below, we can see that prices made only a relatively minor decline from February into March. Prices have since soared sharply to new highs. Recently prices have traded sideways in the $100-$108 area.
The action looks like a bull flag or bull pennant pattern (both patterns have the same result) with a run up from $90 to $105 followed by a pause/consolidation.
Volume was heavy on the rally and less during the sideways movement but the On-Balance-Volume (OBV) line has continued to climb higher, telling us that buyers of FIVN have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line and new price highs could generate a fresh outright buy signal.
In this first Point and Figure chart of FIVN, below, we used daily price data and the chart shows a possible upside price target in the $124 area. A trade at $108.68 will refresh the uptrend.
In this second Point and Figure chart of FIVN, below, we used weekly price data and here the software is projecting a longer-term target in the $217 area.
Bottom line strategy: We have recommended the long side of FIVN in the past and we find reasons to do it again. Traders could buy FIVN at current levels or on strength above $109. Either way risk a close below $100. $124 is our first price target.