The rally that started in late March reached a peak of 319.32 in late October. This was followed by a pullback slightly below the 38.2 Fibonacci retracement level to 252.55. The stock was able to bounce back to the 38.2 Fib retracement level (on the recent downward move) only to fall back again and settle right below the 20 SMA. I believe that the stock will see another rally and touch the 1.272 Fib extension level or 360.76 (price target) as buyer interest increases as it becomes more apparent that it is a greatly undervalued company, especially when comparing its forward P/E of 21.43 to AMZN which stands at a whopping 69.71! The stop loss was set right below the 200 SMA at 235. Good luck to all!
Comment:
The hammer candlestick observed on November 18th followed by a bullish engulfing the next day, not to mention a bullish crossover on the Stochastics and MACD indicators, supports the idea that we may have seen the full extent of the pullback and that the uptrend is likely to resume. The 20 SMA will remain the nearest resistance followed by 278.06 or the 38.2 Fib retracement (on the downward move).
Comment:
Girl you know it’s true! youtu.be/RdSmokR0Enk