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…
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.
Editor, Chart Of The Day