In his first “Executive Decision” segment of Mad Money Thursday evening, Jim Cramer spoke with Gary Steele, CEO of Proofpoint Inc. (PFPT) , the cybersecurity company that’s been lagging its peers with shares off 7.4% for the year.
Steele said cybersecurity is more in demand than ever. He said the work-from-home trend has changed the face of work and companies are adapting to the new blended way of working from the office and remotely.
Phishing attacks are more sophisticated than ever, with emails appearing as the real deal. That’s why Proofpoint is giving its customers more visibility and control into what’s happening in their network and is using the latest in AI to spot fake emails before they’re delivered.
Let’s check out the charts of PFPT to see if we can tell if they are the real deal.
In this daily bar chart of PFPT, below, we can see that the shares have been declining the past 12 months. PFPT has not made a low lower than March but we have seen lower highs the entire time. Prices are trading below the declining 50-day moving average line and the declining 200-day moving average line.
The On-Balance-Volume (OBV) line has been in a decline the past 12 months telling us that sellers of PFPT have been more aggressive for many months and that is not bullish. The Moving Average Convergence Divergence (MACD) oscillator has spent most of the last year below the zero line where it is now.
In the weekly bar chart of PFPT, below, we can see the last three years of price movement. PFPT has failed many times in the $115-$135 area creating what might be a very large top formation. Prices are in a downtrend below the declining 40-week moving average line.
The weekly OBV line shows weakness over the year so far and the MACD oscillator is below the zero line in bearish territory.
In this daily Point and Figure of PFPT, below, we can see a potential downside price target in the $90 area.
Bottom-line strategy: The charts and indicators of PFPT are bearish so traders and investors would be wise to avoid the long side of the stock.
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