Charts suggest these 4 stocks are worth buying when weak


CNBC’s Jim Cramer said Tuesday that one of its most trusted techs, Bob Lang, sees opportunities for investors to buy shares of high growth companies at a discount.

“We had a huge slump in four of the most turbocharged growth stocks today as higher interest rates scared Wall Street out of this whole bunch,” the host of “Mad Money” said. “But the graphics – as interpreted by Bob Lang – suggest that Affirm, Asana, Upstart, and InMode are worth buying in weakness.”

“I’ve seen Lang make these calls after massive sales before, and he’s been there. It wouldn’t surprise me if this didn’t happen again,” Cramer added.

To affirm

Technical analysis on Affirm Holding shares carried out by Bob Lang.

Crazy money with Jim Cramer

Shares of Affirm – a major player in the booming buy now, pay later market – fell 10.79% on Tuesday. Cramer said Lang believes “you should treat any type of withdrawal here as a chance to buy, not to sell.”

According to Cramer, several technical indicators support this view. The first is the Chaikin Money Flow, a measure of whether large fund managers are buying or selling a security.

“Lately the flow of silver has been very strong. So has the moving average convergence / divergence line … [which] is an important momentum indicator, ”Cramer said.

As Affirm neared overbought territory, Tuesday’s drop means that is no longer the case, Cramer said. Lang says Afffirm is his favorite among these growth games and once the stock stabilizes he thinks it’s a name of just under $ 115 that could hit $ 200. In the coming months.”


Bob Lang’s technical analysis of Asana’s shares.

Crazy money with Jim Cramer

Asana, which provides a cloud-based work management platform, entered Tuesday’s session with its stock considered overbought based on the relative strength index, Cramer said. Then the stock fell 10.3%.

Cramer said Lang likes Asana stocks to advance at high volume. Chaikin’s money flow and the moving average convergence / divergence for the company are “both beautiful, and Lang says there is a robust options flow as well,” Cramer added.

“He thinks the stock might look for a tight consolidation over the next few weeks, but as long as Asana doesn’t go too low… this could turn out to be a great buying opportunity,” Cramer said.

Holdings reached

Technical analysis of Upstart Holding shares carried out by Bob Lang.

Crazy money with Jim Cramer

Lang believes the online lending platform Upstart Holdings’ stock chart looks like “a Rembrandt,” Cramer said, after shares rose in August. “The stock has made a series of higher ups and downs, including in the past few weeks when the market has reversed,” Cramer said.

However, the technical analyst believes Upstart must have suffered a pullback, in part because its reading on the Relative Strength Index was overbought.

“The problem is, the dips here have been very small – you rarely get a chance to buy it when it is weak,” Cramer said, noting that Upstart’s 5.6% drop on Tuesday was much less than that. of the other three actions highlighted.

“In Lang’s opinion, you get a great opportunity here. He would be a buyer in this pullback, and he buys more if he keeps getting hit because Upstart is a $ 313 stock that he sees go through. at $ 400, ”Cramer said.

In Mode

Bob Lang’s technical analysis on InMode stocks.

Crazy money with Jim Cramer

Shares of medical technology company InMode fell nearly 13% on Tuesday, a move Cramer said he finds understandable as the stock has more than doubled since the spring.

“That’s why Lang loves him so much. InMode has given you a tremendous pattern of higher ups and downs,” Cramer said. He added that the moving average convergence / divergence indicator “just made a bullish cross … where the black line crosses above the red line, and that is a very reliable signal.”

InMode stocks fell below their 20-day moving average due to the steep drop. However, Cramer said that when it had happened before, the action had been a “shouting buy.”

Lang believes that “this time will be no different, and when the stock recovers, he is looking at a price target of $ 200,” Cramer said.

Source link