Yext Needs More Base Building Before I'll Recommend the Long Side

Yext, Inc. (YEXT) : "I want to buy that stock. That one is good," Jim Cramer told one caller during the 'Lightning Round' segment of Mad Money Wednesday evening. Yext is a software tool designed to manage a business's location-related information on a multitude of directory websites throughout the Internet.  

Let's check out the charts. 

In this daily bar chart of YEXT, below, we can see that prices have been in a downtrend for the past 12 months. YEXT is below the declining 50-day moving average line as well as the declining 200-day moving average line.

Trading volume did not increase all that much into the March low and the On-Balance-Volume (OBV) line shows a decline from February into early April.

The Moving Average Convergence Divergence (MACD) oscillator did not cross to a cover shorts buy signal until earlier this month. The zero line and a buy signal are a ways off. 

In this weekly bar chart of YEXT, below, we can see that prices have been in a much longer downtrend than what can be seen on the daily chart. Prices are below the declining 40-week moving average line.

The OBV line and the MACD oscillator do not yet offer much support.  

In this daily Point and Figure chart of YEXT, below, we can see a potential upside price target of $19 but I suspect that YEXT will have to have a bigger base pattern to actually reach this target. 

Bottom line strategy: YEXT may have a good fundamental story but I want to see more base building before being attracted to the long side. 

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