For his second "Executive Decision" segment of Wednesday's Mad Money program, Jim Cramer spoke with Tomer Weingarten, co-founder and CEO of SentinelOne (S) , the cybersecurity company.
When asked about going after these cyber hackers, Weingarten said they are limited in what they can do. Cybersecurity firms cannot retrieve stolen data or funds, they can only detect the intrusion and share the information with law enforcement, while preventing future attacks.
Let's check out the charts and indicators.
In this daily bar chart of S, below, we can see that prices rallied from its IPO at the end of June but the party ended in November and the trend turned down. Prices are trading below the declining 50-day moving average line.
The daily On-Balance-Volume (OBV) line shows a decline from September telling us that traders are more aggressive sellers than buyers of S. Price momentum has slowed since December but the improvement in this leading indicator may not be enough to generate a rally. S recently made a short-term reversal - a close above the high of the low day - but the rally may not get too far.
In this weekly Japanese candlestick chart of S, below, we see a mostly bearish picture. Prices are in a decline with trading volume increasing. Increasing volume in a decline is bearish as it tells us that more traders are becoming bearish and voting with their feet. The latest candle might be a spinning top but without bullish confirmation it is not enough to declare a low is in place.
In this daily Point and Figure chart of S, below, we can see a potential downside price target of $16 using a traditional even dollar scaling.
In this second daily Point and Figure chart of S, we used a percentage change scaling and now the chart reveals a $50 price target.
Bottom line strategy: A short-term bar chart reversal, improving momentum, a spinning top and one bullish Point and Figure chart all point to a potential tradable rally. Aggressive traders could go long S on a slight intraday dip. Risk to $28. Target $50.
