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Here's When to Be a Buyer of JFrog

The software company has moved higher in the past six weeks.
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JFrog Ltd (FROG) has made a base pattern which is easier to understand than what it does. It seems that FROG "enables choice in supporting 25+ software build packages, all major CI/CD platforms, and DevOps tools". Let's look at some charts.

In this daily bar chart of FROG, below, I can see a move higher from lows in March and May. Prices corrected lower in August, September and October before climbing to a new high for the move up. FROG trades above the rising 50-day moving average line and above the rising 200-day moving average line.

The On-Balance-Volume (OBV) line has risen the past six weeks but is still below its July high. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.  

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In this weekly Japanese candlestick chart of FROG, below, I can see that prices found support in the $20-$15 area several times. Prices have improved in recent months and they now trade above the rising 40-week moving average line.

The weekly OBV line has moved sideways the past two years. The MACD oscillator has improved the past two years and now stands above the zero line in bullish territory. 

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In this daily Point and Figure chart of FROG, below, I can see a potential upside price target in the $52 area. 

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In this weekly Point and Figure chart of FROG, below, I can see the same upside price target as shown on the daily chart - $52. 

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Bottom line strategy: FROG has sprinted higher in the past six weeks so I would rather be a buyer on a correction, ideally a two-week pullback. Let's put FROG in our "market minder" and let's see how it plays out. 

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