Online dating was already a hot secular growth trend going into the pandemic, Jim Cramer told Mad Money viewers Wednesday night, but after a year of forced separation, vaccinated people are ready to mingle again, and that is great news for Match Group (MTCH) , the dating company behind Match.com, Tinder and other dating websites.
When Match last reported, the company posted solid 23% revenue growth, 12% subscriber growth and a 38% boost in operating income. Cramer said this once tiny company has definitely left the nest of IAC Interactive (IAC) to become a full-fledged online powerhouse all on its own.
Match also shelled out $1.7 billion to acquire Hyperconnect, a video and chat service that is already adding to its strong portfolio of services.
Let’s check on the charts of MTCH.
In the daily bar chart of MTCH, below, we see a mixed picture. The shares have been in a sideways trading range since December. Prices started a new minor uptrend in June but prices have so far stalled just below the February highs. MTCH is trading above the rising 50-day moving average line and the rising 200-day line but a shallow pullback could change that.
The daily On-Balance-Volume (OBV) line shows some improvement from June but the movement in the trading volume does not match the price movement which has been like a saucer. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has narrowed sharply and could turn down as easily as turning higher.
In the weekly Japanese candlestick chart of MTCH, below, we can see that in the last four weeks the market is stalling with a doji and spinning top and two upper shadows that tell us that traders are rejecting the highs. The 40-week moving average line is positive but we don’t have a lot of price history.
The weekly OBV line is at the top of its trading range. The MACD oscillator is crossing to the upside for a buy signal.
In this daily Point and Figure chart of MTCH, below, we can see a potential upside price target of $190.
In this weekly Point and Figure chart of MTCH, below, we can see a price target of $179, which is less than the daily target. Interesting.
Bottom-line strategy: We do not have a lot of price history for MTCH but the sense I get from these four charts (above) is to be very cautious in the short-term with weekly candle patterns that could be top reversals.