ChargePoint may bounce, but is that enough juice for investors?

During Tuesday’s “Lightning Round” segment of crazy money, a caller asked Jim Cramer on ChargePoint Holdings (CHPT). “I’d buy it under $20. This whole industry is trading down right now,” Cramer said of this company that has built an electric vehicle (EV) charging network.

Let’s take a look at the graphs.

In the CHPT daily bar chart below, we can see that the stock has been weak after a May/June rally. CHPT is trading below both the 50-day moving average and the 200-day moving average.

The On-Balance-Volume (OBV) line has stalled since December, but the weakness in recent weeks looks like sellers are becoming more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved below the zero line earlier this month for a straight sell signal. The lows of March, April and May are a tempting target.

In CHPT’s weekly Japanese candlestick chart below, we can see three upper shadows since late June, telling us that traders have rejected the highs. A weekly close below $20 will be bearish.

The weekly OBV line is bearish and so is the MACD oscillator.

In this CHPT daily Point and Figure chart below, we can see that the software is projecting a downward price target in the $18 area.

In this weekly Point and Figure chart from CHPT below, we can see a potential longer term price target in the $8 area.

Bottom line strategy: CHPT could bounce and hold out the March-May lows, but the chart suggests further weakness is possible. For now, avoid the long side of CHPT.

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