In his first "Executive Decision" segment of Mad Money Monday evening, Jim Cramer spoke with Hayden Brown, president and CEO of Upwork (UPWK) , the remote working platform that connects companies to freelance workers.
Brown said that Upwork has been helping companies staff critical tasks for 20 years. With the Covid-19 pandemic, remote work has gone mainstream.
Upwork works with small and medium-sized businesses all the way up to Microsoft (MSFT) , Brown added. Many companies simply can't find the talent they need in their local area. Now with the pandemic, more companies are being forced to try remote work.
Cramer said Upwork is the "real deal" and perfect for our new normal.
Let's check on the charts of UPWK to see if the recent upswing in price can continue.
In this daily bar chart of UPWK, below, we can see that prices have been under selling pressure for the past 12 months. Prices finally made a low in March and rallied with the recovery of the broad market.
UPWK has rallied above the now rising 50-day moving average line and just touched the underside of the still declining 200-day moving average line. Trading volume has increased from late April as the UPWK story gets around to traders.
The daily On-Balance-Volume (OBV) line shows some improvement as buyers of UPWK have been more aggressive in recent days.
The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line last month for an outright buy signal.
In this weekly bar chart of UPWK, below, we do not have our usual three years of price action to work with. Prices are pointed up and are testing the declining 40-week moving average line from the underside. Sometimes the 40-week line can act as resistance in a downtrend (or support in an uptrend).
The MACD oscillator has turned up for a cover shorts buy signal on this time frame.
In this daily Point and Figure chart of UPWK, below, we used a traditional charting price increment. A potential price target in the $20 area is being projected.
Bottom line strategy: The charts of UPWK (above) do not show a broad base pattern prior to its current rally. That can happen but it can mean that the odds of a correction increase. Aggressive traders who want to go long UPWK should wait for a pullback into the $9.50-$9.00 area before buying. Risk a close below $8.00. $13 and then $20 are the potential price targets.