Viacomcbs Inc - Long Opportunity Buy at $40 - stop loss at $38
Fundamental Point of View:
ViacomCBS has recently featured heavily in the news due to it's $3bn stock offering, resulting in a large sell off which has had a role to play in the misfortunes of some hedge funds. Ignoring the misfortunes of Archegos Capital Management, ViacomCBS successfully raised $2.65bn at $85 a share. ViacomCBS now has a significant opportunity to pursue it's aggressive strategy to compete with the likes of Netflix and Prime.
Technical Point of View:
I've labelled levels of strong support and resistance on the chart and what becomes apparent is that the sell off witnessed over the last couple of weeks has stalled at a very significant level. This level is where strong, historical, horizontal support intersects the corona recovery line of support. This presents the perfect risk vs reward opportunity of a bounce back up to prior resistance. The three price targets highlighted are recent areas of support that were broken and are now acting as resistance. Price target two lines up perfectly with the Fibonacci retracement level of 0.5,therefore if a bounce occurs i am looking to take profits at this level.
Buy in the range of $40 - $41 with a tight stop loss at $38.
At present i am not in this stock but have entered a buy order at $41.
ViacomCBS has recently featured heavily in the news due to it's $3bn stock offering, resulting in a large sell off which has had a role to play in the misfortunes of some hedge funds. Ignoring the misfortunes of Archegos Capital Management, ViacomCBS successfully raised $2.65bn at $85 a share. ViacomCBS now has a significant opportunity to pursue it's aggressive strategy to compete with the likes of Netflix and Prime.
Technical Point of View:
I've labelled levels of strong support and resistance on the chart and what becomes apparent is that the sell off witnessed over the last couple of weeks has stalled at a very significant level. This level is where strong, historical, horizontal support intersects the corona recovery line of support. This presents the perfect risk vs reward opportunity of a bounce back up to prior resistance. The three price targets highlighted are recent areas of support that were broken and are now acting as resistance. Price target two lines up perfectly with the Fibonacci retracement level of 0.5,therefore if a bounce occurs i am looking to take profits at this level.
Buy in the range of $40 - $41 with a tight stop loss at $38.
At present i am not in this stock but have entered a buy order at $41.