Green Dot Corp. (GDOT) : "That was not a good quarter. I'm taking a pass on that one." That is what Jim Cramer told one caller during the Lightning Round on Mad Money Thursday night. Let's see how bad the charts look.
In this daily bar chart of GDOT, below, we can see a hurtful downtrend the past 12 months. Prices were hovering around $90 back in September and November, and now they trader for just $30.
Trends are powerful forces. GDOT is below the declining 50-day average line and the slower-to-react but declining 200-day line. You cannot miss the tow large downside gaps with heavy volume telling you that longs were anxious to sell.
The daily On-Balance-Volume (OBV) line has weakened significantly sine the beginning of the year. The Moving Average Convergence Divergence (MACD)is in a sell mode.
In this weekly bar chart of GDOT, below, we can see the power of the bear as two years of price gains were wiped out in half the time.
GDOT is below the declining 40-week moving average line and the weekly OBV clearly shows that sellers have been more aggressive. The MACD oscillator has been below the zero since February.
In this Point and Figure chart of GDOT, below, we can see the decline without the gaps. The distribution (selling) is significant and the potential downside price target is $0 (zero). Not pretty.
Bottom line strategy: GDOT may or may not be headed for zero but the charts and indicators tell you that this is a falling knife.