This Cloud Platform's Stock Price Could Be Ready to Push Higher
A close look at the data reveals a new investment strategy for a promising tech name.
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Smartsheet SMAR is a cloud-based platform for work execution, "enabling teams and organizations to plan, capture, manage, automate and report on work at scale, resulting in more efficient processes and better business outcomes."
Let's check out the charts and indicators.
In this daily bar chart of SMAR below, I can see that prices have been fairly volatile in the past few months. Prices made a low in March followed by retests in April and early June before rallying. SMAR now trades above the rising 50-day and rising 200-day moving average line. The 50-day line is about to cross above the 200-day line for what is commonly called a (bullish) golden cross buy signal. The daily On-Balance-Volume (OBV) line is showing strength since March and tells me that buyers of SMAR are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator has struggled in the past year but is now in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of SMAR below, I can see the last three years of price action. Prices look like they have built a base formation the past two years or so. Dips into the $40 to $35 area have found buying interest (support). Prices are above the 40-week moving average line. The weekly OBV line shows us a rise from 2021 and then a move lower in the first quarter of 2024 — a strong longer-term trend. The MACD oscillator has crossed to the upside of the zero line for an outright buy signal.
In this daily Point and Figure chart of SMAR below, I can see an upside price target in the $52 area. A trade at $53 will refresh the uptrend.
In this weekly Point and Figure chart of SMAR below. I can see a big upside price target in the $92 area. Wow. A weekly trade at $53 will refresh the uptrend and open the way to further gains but maybe not as high as $92.
Bottom line strategy: SMAR may need some sideways price action around $48 for a few days before trying to push higher. Traders could go with a partial long around $48 and add to longs above $53. Risk to $45.
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