The movement of CLOV continues to mirror the condition of the overall market. Today, the tech-led sell-off took a pause, with S&P 500 rising by 1.95% and NASDAQ Composite rising by 1.55%. Similarly, Clover Health ended higher by 7.54%, closing above the previous day's close.
Going into next week, I expect CLOV performance to continue reflecting the overall market condition. Nevertheless, these are some notable resistance and support area that you should take note next week, with key areas highlighted in Bold:
Dynamic resistance: Bottom of the previous bearish channel that we were trading in before this market correction (~$8.50) Dynamic support: Top of the very tight bearish channel that we just broke out of (~$7.10)
Once this correction is over, I expect CLOV to emerge as one of the winners.
Invest safe.
This is not investment advice so please do your own due diligence! Support this idea with likes and share your thoughts below.
WHAT ABOUT THE SECURITY FRAUD CLASS ACTION FILED AGAINST CLOVER , WILL AFFECT ?
AntrePoint
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@gabrieljorge1, No, it won't. Most, if not all effect on price caused by the investigation is already priced in. The current rock-bottom price is not sustainable long term based on the class action alone unless the market condition continues to stay weak. Once the situation resolves and the market recovers, CLOV will bounce back very strongly. At worst, I only expect short-term downward pressure on prices until the situation clears up.
Pooshoes
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You've drawn two falling channels, but you could also redraw them as descending wedges, I believe a reversal is in the works to approximately $12.00 in the short term.
AntrePoint
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@Pooshoes, Thanks for the awesome feedback, will definitely give it a look. Beyond short-term reversal, I believe both medium and long-term outlook is looking great for CLOV as well given the continued growth projected in their recent earnings.
@jackr70, Hard to say, it might correct quickly after this massive decline is such a short period. Like holding a basketball underwater it's bound to pop back up before finding it's footing a a steady price.