FSLY is reporting earnings today AMC (After Market Close).
In the last 2 days, it gapped and short up a whopping 36% from 9.87 (last Friday's close) to 13.43 yesterday. Could it be accumulation by those who might already 'know" that earnings could surprise to the upside? However, at current price, whether FSLY continue to run up after earnings or "sell upon news" remains to be seen.
What is more important is that the longer term price recovery is likely to be underway owing to how the stock has been behaving:
1. Rounding base has been forming in the last 9 months with its 200 day MA slowly flattening out
2. Went above its 200 days Moving Average since above 2 weeks ago (dipped back below only briefly )
3. Golden Cross approaching
4. The huge volume and gap up on 13 Feb could be a potential breakaway gap (though we can only confirm on hindsight).
Unless earnings disappoint greatly and send the stock crashing badly again, it could be time time to accummulate on near term dips, especially if it can hold above yesterday's candle low @ 12.16.
(sign of strength if it it does not dip below here, no go it dips sharply below)
However, being a penny stock, % movement can be huge (both ways) hence suggest not to not oversize in order to withstand volatility with trailing stops catering to least 10% - 12% pullbacks.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
In the last 2 days, it gapped and short up a whopping 36% from 9.87 (last Friday's close) to 13.43 yesterday. Could it be accumulation by those who might already 'know" that earnings could surprise to the upside? However, at current price, whether FSLY continue to run up after earnings or "sell upon news" remains to be seen.
What is more important is that the longer term price recovery is likely to be underway owing to how the stock has been behaving:
1. Rounding base has been forming in the last 9 months with its 200 day MA slowly flattening out
2. Went above its 200 days Moving Average since above 2 weeks ago (dipped back below only briefly )
3. Golden Cross approaching
4. The huge volume and gap up on 13 Feb could be a potential breakaway gap (though we can only confirm on hindsight).
Unless earnings disappoint greatly and send the stock crashing badly again, it could be time time to accummulate on near term dips, especially if it can hold above yesterday's candle low @ 12.16.
(sign of strength if it it does not dip below here, no go it dips sharply below)
However, being a penny stock, % movement can be huge (both ways) hence suggest not to not oversize in order to withstand volatility with trailing stops catering to least 10% - 12% pullbacks.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!