Why bullish?
1) 5-years trendline crossing with 2-years downtrend channel at 85 and also gapfill at 85. so buy-zone is between 85 and 102.
2) Q3 earnings better than expected.
3) TDOC has contracts signed with some big players that is not counted in their sales until next quarter. so Q4 will rock.
4) possible lockdown winter. aviation stocks are bleeding again because of omicron news.
in 2 weeks biontech will tell if their vaccine is strong enough for omicron variant. if not, stay-at-home stocks will rise again. (like zoom, roku, pton, tdoc)
5) winter is a gain for TDOC. Even if you just catch cold, you will think its covid. so healthcare will be stressed during winter, overcrowded waiting rooms etc.
what would you prefer, sitting in a room with potential covid patients or a simple video call?
6) if new users get satisfied, they will become long term users, thats how innovation companies grow!
2 bottom scenarios:
A) $100: Risk to reward is nice here, LONG 101, SL 99. after 99 I would watch where it goes.
B) $85: rock bottom. I cant imagine that TDOC will break that support. (see chart)
risks and warnings:
global inflation is at historical highs. volatility could trigger domino effect.
if bubble stocks like Tesla fails, it will drag down innovation stocks.
keep an eye on ARKK innovation ETF (Top Assets: 9.56% Tesla, 5.76% TDOC, Zoom 4,36%, Roku 6,48%)
(not investment advice)
Comment:
75 next support
Comment:
we are in no man's land. Im out of TDOC for now. Need to see how FED is going to handle inflation and how SPY will react to it. 65 could be next support but if SPY crashes again even 45 is possible.