• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Zebra Technologies Needs to Hold Support

The charts and indicators of ZBRA are touch and go right now.
By BRUCE KAMICH
May 05, 2021 | 08:40 AM EDT
Stocks quotes in this article: ZBRA

For his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Anders Gustafsson, CEO of Zebra Technologies (ZBRA) , the logistics company.

Gustafsson said the pandemic has changed a lot of value behaviors. Companies are moving faster than ever towards digitization and automation, especially in health care, which is Zebra's faster-growing vertical.

Patients are expecting a digital experience, and technologies from Zebra help provide greater efficiency and overall patient care. Fewer errors translates to lower malpractice premiums, he said. That's why the company was able to raise their outlook for the year.

Let's check on the outlook for the charts of ZBRA.

In this daily bar chart of ZBRA, below, we can see that prices have made a strong rally the past 12 months. Prices are showing a smallish double top pattern in the $520 area in recent weeks but prices have so far held the March lows. ZBRA is trading below the flat 50-day moving average line. The 200-day moving average line is rising and intersects down around $370. The trading volume was heavy in February and early March during the first peak of this possible double top and that is not unusual.

The On-Balance-Volume (OBV) line shows weakness from late February and that tells us that traders have been more aggressive sellers for several weeks. The Moving Average Convergence Divergence (MACD) oscillator shows a peak in late February and a much lower peak in the middle of April even though prices reached the same peak. An interesting bearish divergence.

In this weekly Japanese candlestick chart of ZBRA, below, we see a mixed picture. Prices are still in a longer-term uptrend above the rising 40-week moving average line. The most recent candle shows a lower shadow telling us that traders rejected the recent lows and support around $450 held.

The OBV line shows sideways movement the past three months but a new low would tilt things more bearish. The MACD oscillator has crossed to a take profit sell signal.

In this daily Point and Figure chart of ZBRA, below, we can see that prices are in a down column of "O's" and that a trade at $450.94 would be a new low for the move down and could turn the chart bearish. Right now an upside price target of $648 is still being projected.

Bottom line strategy: The charts and indicators of ZBRA are touch and go right now. The picture is toppy but things could strengthen and the pattern could resolve itself into a continuation pattern. Prices need to hold their March lows. Be patient and wait.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Health Care Equipment & Services | Healthcare | Life Sciences | Technology | Mad Money | Executive Interview

More from Investing

The Market's 'Generals' Are Now in the Crosshairs

James "Rev Shark" DePorre
May 18, 2022 4:42 PM EDT

We've reached the next phase of the bear market, as big names get hit.

These Three Small-Cap Stocks Boast Big Dividends

Bob Ciura
May 18, 2022 3:00 PM EDT

Look beyond the mega-cap names for income investing to the more inclusive -- and often smaller -- Dividend Champions.

Can Nvidia Make a Rebound Rally Ahead of Earnings?

Bruce Kamich
May 18, 2022 2:32 PM EDT

Here's what I'd look for NVDA to do in the days ahead.

After Cisco Reports, Will There Be a Tradable Rally?

Bruce Kamich
May 18, 2022 12:04 PM EDT

Let's see how the charts look before earnings Wednesday night.

ServiceNow Picks Up a New Bull on Their Shares

Bruce Kamich
May 18, 2022 11:20 AM EDT

Here's what aggressive traders could do now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • 03:07 PM EDT PAUL PRICE

    Why Is Walmart Down Big Today?

    Besides its poor earnings report Walmart was way...
  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login