Clear Evidence of Buying Power Increase

Yesterday, we looked at a Daily Price Chart with moving averages of the iShares Nasdaq Biotechnology ETF, noting the ETF’s monthly price was trading above the 10-Month SMA.

Today’s Chart of the Day is for MongoDB, Inc (NYSE: MDB).

MongoDB, Inc. operates as a general purpose database platform worldwide. The company offers MongoDB Enterprise Advanced, a subscription package for enterprise customers to run in the cloud, on-premise, or in a hybrid environment; MongoDB Atlas, a cloud-hosted database-as-a-service solution; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB.

Now, the Daily Price Chart below shows that MDB is in a price uptrend because the current price of MDB is trading higher than it was exactly six months ago.

The On Balance Volume (OBV) Chart is shown below the Daily Price Chart.

Here’s what you need to know about the OBV Line: it measures how much volume is either pushing the stock up, or down. Meaning, the volume of stock that’s being sold or bought.

Using a stock’s volume in this way can confirm a downtrend by reflecting that more people are selling the stock than are buying it. Take a look at the chart below…

MDB Buying Power

We can see from the OBV chart shown above that the On Balance Volume line for MDBA is sloping up.

An up-sloping line indicates that the volume is heavier on up days and buying pressure is exceeding selling pressure.

Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend.

The numerical value of the On Balance Volume line is not important. We simply want to see an up-sloping line to confirm a price up trend, which is displayed in the chart above.

We’ll be sure to keep following MongoDB, Inc., as the stock’s buying pressure exceeds it’s selling pressure and the price uptrend continues.

Additionally, we’d like to talk about how a previous Chart of the Day stock has done…

On April 30th, we highlighted Sea Ltd. (NYSE: SE), noting that SE stock’s 12/26 MACD was above the 9-Day EMA signaling a bullish trend.

If you happened to have purchased SE shares on that day, you’d already be up 23.6%.

But… if you had purchased the right option contract, you would be up 235.2% in less than three weeks’ time!

That’s the power of options.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

Chuck Hughes

Written By Chuck Hughes

Before Chuck Hughes won 10 Trading Championships, he was an accomplished Air Force pilot. In fact, he credits his success as a stock and options trader to his disciplined upbringing and career. When he was deciding between a career in the Navy and a career in the Air Force, the Navy told him he’d only have a 33% chance of flying jets. The Air Force gave him 100%. He liked those odds better. 35 years ago, Chuck had a wife, a young daughter, a son on the way, and a huge mortgage to afford. He didn’t want to give up on his lifelong dream and stop flying for a major commercial airline. He knew he needed to supplement his income during the 15 days a month he wasn’t flying. So he used his experience in discipline and math, and his understanding of finance and the stock markets (which he’d always been interested in,) and opened a $4,600 trading account. He made over $460,000 in profits his first two years of trading, and he hasn’t looked back since. When he was diagnosed with Meniere’s disease 15 years later, which commonly leads to vertigo…He knew his career as a pilot wouldn’t last much longer with those odds. But he didn’t have to scurry to find another gig, or panic about how his family would eat… He’d spent the last 15 years perfecting his system and raking in cash. As an options trader, Chuck does not let his emotions get in the way of his trading strategy. He adheres to disciplined and methodical options and stock trades. Because he respects the options game so highly, and understands the true freedom that financial solvency can bring, Chuck was able to design and refine his system and win those 10 Trading Championships. Put simply, Chuck Hughes’ trading strategies work, and in all types of market conditions. They’ve worked throughout the bull, bear, and flat markets America has seen in the last 30 years. Chuck Hughes has spent that time building a reputation as one of the most trustworthy options traders in the industry. His publishing group Legacy Publishing LLC was one of the few trading groups on the planet to have correctly predicted and profited from the 2008 financial crash .As a published author 16 times over, a 10-time Trading Championship winner, and an options-trading teacher for 25 years, he’s learned to trade and teach without an ego.