GoodRx is not showing us a good stock chart

In his first “Executive Decision” segment on Thursday mad money program, Jim Cramer spoke with Doug Hirsch, co-founder and co-CEO of GoodRx (GDRX), the pharmacy savings app.

Hirsch explained that if the pandemic has taught us anything, it’s that consumers don’t like buying prescriptions by mail. That’s what makes GoodRx so valuable, he said, patients get the best prices and can still get them at their favorite pharmacies.

Everyone wants patients to save money, including doctors and pharmacists, Hirsch added. That’s why GoodRx continues to grow through word of mouth and referrals.

GoodRX partners with companies like DoorDash (DASH) to help those in the gig economy stay healthy and have better access to affordable healthcare.

In our last GDRX review on April 15, we recommended “Aggressive traders could go long GDRX at current levels and with strength above $42. Risk at $32.”

In this updated daily bar chart from GDRX, below, we can see that prices have not rallied at or above $42 to give us a buy signal. Good, because prices finally fell to a new low in May. GDRX rallied in early June and retreated in early July. GDRX hasn’t made a new low for the downside, so for now, we can be optimistic that we might see a trend change from the bottom sideways or even to the upside.

Prices are below the 20-day and 50-day short-term moving averages. The On-Balance-Volume (OBV) line is still in a downtrend and tells us that GDRX sellers are more aggressive than buyers. The MACD (Moving Average Convergence Divergence) oscillator is below the zero line and bearish.

In this weekly Japanese candlestick chart from GDRX, below, we can see a lower shadow below $30 in early May as traders rejected those lows. It’s full of hope. The early June doji marks the reversal from the top. A weekly close above $40 is needed to generate a more bullish picture.

The OBV line and the MACD oscillator are bearish.

In this daily Point and Figure chart from GDRX, below, we can see that the software is projecting the $26 area as a potential downside price target.

Background strategy: As someone who has already used up their entire FSA allowance, saving money on medication is a wonderful idea, but GDRX charts and indicators just don’t give us the same impression. Avoid the long side of GDRX until we see evidence of a sustainable bottom.

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Karen J. Nelson