It Might Be Best to Take a Vacation From Buying Shares of Vacasa

In his first Executive Decision segment of last Friday’s “Mad Money” program, host Jim Cramer spoke with  Matt Roberts, CEO of Vacasa Inc. (VCSA) , a vacation rental platform that came public late last year via a special purpose acquisition company (SPAC) merger. 

Let’s check out the charts and indicators of Vacasa, which reported a fiscal fourth-quarter loss last week that was smaller than expected by analysts.

In this daily bar chart of VCSA, below, we can see a significant percentage decline from December to March. Prices have made two lows in February and March, but I would not consider it a double bottom. Strength above the February high will help, but the pattern is not large enough in time to suit me. Double bottoms are large patterns after a long decline and this looks like two lows after a short decline. Trading volume has been increasing since late January and that is a plus and the On-Balance-Volume (OBV) line is improving and that, too, is a plus. The trend-following Moving Average Convergence Divergence (MACD) oscillator is about to cross the zero line for a buy signal.

In this weekly Japanese candlestick chart of VCSA, below, we can see a mixed picture. The indicators are showing improvement like the daily chart above but we can see a number of upper shadows above $8.00, showing us that traders are rejecting those levels. A close above $8.50 is needed to show us that the picture is strengthening.

In this daily Point and Figure chart of VCSA, below, we see a potential upside price target of $13.

Bottom line strategy: iIn a stronger market environment I would recommend purchase of Vacasa, but the current status of the markets is keeping me sidelined on VCSA.