Back to Pre-COVID19 Trend. Price Target 25 for the Coming Year
Fundamental analysis indicates a rewarding buy and the past year wouldn't have disappointed, exceeding the market average with steady growth. However, as the market approached the GameStope Squeeze, amid the buying frenzy of the beginning of the year, SOLARIA hit the ceiling, tried to revive the trend again back in the day of the squeeze, and then gave up to a bearish trend ever since, now ongoing for 3 months.
To analyze the effect and the prospects, I included her
ESP35
index as an indicator of the local market ecosystem (please note that SOLARIA is not part of the index). I also included
BB
to show the effect of the GameStop squeeze clearly.
First thing to notice is the pre-VOVID19 trends:
After the first lockdown, and as the market gained momentum from the sudden fall of prices, SOLARIA was the largest and most steady gainer among the 3. Looking at the 3 graphs together, you can identify October 28, 2020 as the start of the major bullish trend that culminated with the GameStop squeeze and caused SOLARIA to lose half the gains of the prior year. Now, things look as follows:
Perhaps, the most important piece of detail here is that the RSI is not showing an oversell, which means that SOLARIA's price may continue slipping slowly without resistence until the COVID-19 effect is cancelled and it finds support in the original, pre-COVID19 trendline.
I will pick something between the trendlines of the market and the pre-COVID19 level and go for a price target of 25 by April next year. Since the fundamentals are good, the price is at a low, and is cheap, a long-term long would make sense.
To analyze the effect and the prospects, I included her
ESP35
index as an indicator of the local market ecosystem (please note that SOLARIA is not part of the index). I also included
BB
to show the effect of the GameStop squeeze clearly. First thing to notice is the pre-VOVID19 trends:
- Blackberry was downwards with a relatively small angle.
- ESP35 was upwards but fell heavily as a result of the first lockdown.
- SOLARIA was up with a relatively small angle.
After the first lockdown, and as the market gained momentum from the sudden fall of prices, SOLARIA was the largest and most steady gainer among the 3. Looking at the 3 graphs together, you can identify October 28, 2020 as the start of the major bullish trend that culminated with the GameStop squeeze and caused SOLARIA to lose half the gains of the prior year. Now, things look as follows:
- Blackberry trending downwards towards the pre-COVID19 levels, losing all the gains of the squeeze.
- ESP35 is trending upwards towards its towards the pre-COVID19 levels.
- SOLARIA, as the pitchfan shows, is currently leaving the COVID19 trend altogether, towards the original one of the smaller angle, as highlighted in the graph.
Perhaps, the most important piece of detail here is that the RSI is not showing an oversell, which means that SOLARIA's price may continue slipping slowly without resistence until the COVID-19 effect is cancelled and it finds support in the original, pre-COVID19 trendline.
I will pick something between the trendlines of the market and the pre-COVID19 level and go for a price target of 25 by April next year. Since the fundamentals are good, the price is at a low, and is cheap, a long-term long would make sense.
