MNDY looks healthy and is possibly setting up.
The setup: 52-week high breakout above $187 pivot
Late Jan, it came above the 200dsma and rode the 21-day ema for about a 25%-30% move then started to drifted back in undercutting the 200dsma for four days in early May. This four day undercut traded on above average daily volume without further progress to the downside, this can be interpreted as supporting action. A week later the stock gapped up on 5/15 due to earnings announcement and put in an HV1 (highest volume traded in 1 year).
It hasn't closed the gap and found support at the 50dsma. Relative strength is also lifting nicely.
$187 is a significant pivot when viewed on a higher time frame (look at the weekly).
Breakout traders might consider this actionable above $187, especially if it's followed by volume.
Risks:
A breakout might result in a nice 10%+ opportunity with decent risk management below the recent multiday tight consolidation around $174 (~7%).
A pullback and hold of the breakout would be confirmation of a stage 2 uptrend.
The setup: 52-week high breakout above $187 pivot
Late Jan, it came above the 200dsma and rode the 21-day ema for about a 25%-30% move then started to drifted back in undercutting the 200dsma for four days in early May. This four day undercut traded on above average daily volume without further progress to the downside, this can be interpreted as supporting action. A week later the stock gapped up on 5/15 due to earnings announcement and put in an HV1 (highest volume traded in 1 year).
It hasn't closed the gap and found support at the 50dsma. Relative strength is also lifting nicely.
$187 is a significant pivot when viewed on a higher time frame (look at the weekly).
Breakout traders might consider this actionable above $187, especially if it's followed by volume.
Risks:
- There is clear overhead supply from 2021. (obstacle to become a ML)
- The company has negative earnings
- Revenue growth is decelerating
A breakout might result in a nice 10%+ opportunity with decent risk management below the recent multiday tight consolidation around $174 (~7%).
A pullback and hold of the breakout would be confirmation of a stage 2 uptrend.