Now that we know that there is interest in BMBL...
Consider the following facts: - Bumble launched at $43 - It topped at $84.79 two days later due to mania (+75%) - We are only 11% down from the top ($75.36) - It double bottomed at $70 - Buying volume has dropped significantly - Selling volume is on an uptrend
Taking into account all of these factors, BMBL may go short temporarily. Share prices are likely to fall through the key support at $70 and through the secondary resistance at $63.90. There are two ways to enter, with or against those who bought into the IPO.
Buy and Hold Entry Plan Part A Minimum Budget: $270.69 + Brokerage Fees Entries: 60.86x1, 58.96x1, 52.86x1, 51.94x1, and 46.07x1 Total Shares: 5 Stop Loss: $43 (optional) Post-Stop Remainder: $215 Time-Investment: Short-Term
The first part of the plan is to enter above the IPO investors and to tolerate an acceptable amount of losses. Whales are averse to losing money but if they bring the roof down over their heads, they may begin eating each other. (Stop Losses at $43)
Part B Minimum Budget: $564.72 + Brokerage Fees Entries: 31.28x7, 22.14x7, 17.17x7 Total Shares: 18 Stop Loss: None Time Investment: Long-Term
The second part of the plan is to re-enter during the aftermath of initial market cap loss underneath the paper-handed whales, instead of during. At this point, there is bound to be even more natural resistance as price falls below launch. Because Bumble is a fundamentally solid company, these price levels are actually pretty golden for pickup. The reason Part A is involved is to keep you in the asset at all times, therefore increasing your exposure to profits. Should the ATH price rise above $84.79, this plan needs to be updated and have the entries adjusted upwards accordingly.
I FOMO'd in at 74.29 thinking of exiting my position and taking the loss. wwyd?
Hemlocked
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@Fanore2020, I would try to exit at $72.05/$72.99 (very likely) to $77.40 (realistically possible) or right now at this very moment. I would eat no more than a 10% loss because that's when you need at least 11% profit to recover from that. This is better than a 50% loss because you need a 100% profit to recover from that. You are currently 5% down. (mark price is currently $70.24) $63.90 is kind of where things are going to accelerate downwards so I would be weary. Imagine a sailing ship being pulled in by a whirlpool. The tipping point is officially 61.17 because it would technically be a new all-time low.
Just make sure to set a stop loss and set your buy orders down below at the other entries. Time in the market beats timing it.
If you can afford it, don't set a stop loss and just set proportionally equal buys at all the buy zones that I indicated. I believe that BMBL is a solid company and that if you hold, it will eventually look good for your current position. There is no reason to FUD your position unless you have a smaller account/ bought way too hard into BMBL at that price level.
Remember that the bull market lasts 7x as long as the bear market. Fortune be with you.
Pupinio
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I honestly do not know what will happen with the stock, but a great way of presenting information! Thanks!