Disclaimer: I am participating in this opportunity. This is just my thoughts, follow at your own risk/reward tolerance.
A. You can see the pattern of the last month or so has been a downward channel . Consistent short seller wins due to poor investor confidence.
B. The downward channel was broken and a double bottom formed on the Daily chart .
C. Based on recent political events I would expect Express Spa to stick to a new upward trend that may become quite aggressive once people see the opportunity and the stock begins to rise past 1.45.
Primary reasons for a reversal:
- Doug, the CEO , is vocalizing new partnerships that have been signed with XSPA (United Airlines, JetBlue Airlines, Hawaiian Airlines). Previously he seemed quiet for months
- The company seems to be appealing to the new Democratic government (from blue swing )
- I don't think they can afford to do any more reverse splits based on reputation.
One way to play this would be to STOP LOSS below the double bottom ($1.09? You pick, but don't make the STOP LOSS too tight or a fake out will trigger your sale.) And then just feel out the growth over the next few weeks/months.
Comment:
Looks very good at this point. Large spike in volume which is lifting it off the ground that it had double bottomed around. If you wanted a high risk reward: STOP LOSS approx. $1.10-$1.15. Ride from $1.32 as far as it can grow. I wouldn't be surprised to see it reach $10/share.