Slack Technologies (WORK) has been building a software program for a while now, but the stock recently went public. Since the IPO, the stock has been breaking down. All that changed this week, when the stock surged off the lows.
Waiting for a base in an IPO name is usually a good idea. This would be the conclusion of the base-building, and the stock is now trying to work higher. The technology is up against Microsoft TEAMS, but it is a very user friendly application that I use regularly.
Notice that the PPO has moved above zero and is now in positive territory. It is this change in behavior that we can clearly see on the price chart. This is how new uptrends start, so if you are interested in this stock, this is what we are looking for. With a ticker symbol of WORK, perhaps we can get this stock working for your portfolio. A stop would go just below the breakout level of $24.
I also covered off some IPO names while I was reviewing the China Stocks on the latest Market Buzz.
In addition, I wrote an article this week on the Canadian Technician, which you can click on this link to read.
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies
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