Description
⋅ Conviction: 4/5
Entry is not idea, could have better entry point if price goes down to retest support.
Main thesis
- Bounced off long-term (1991) channel bottom in December
- Bounced off 50M-MAas well
- RSI-M also bounced off historical lows, although not levels with highest certainty
- Confirmed breakthrough from downward resistance line last week
- Touching lower bound of channel (2016)
Misc Info
- P/S level of 3ish is high relative to historical levels, however much lower than some other tech companies...
- P/S level of 3 is about the same as S&P 500
- Healthcare (AMEX:XLV) looks good compared to AMEX:SPY, could carry this up as well
Potential Risks
- RSI-W is heating up, although does not preclude from uptrend in medium term (about a year)
- Just broke through (with confirmed close) last week from downtrend resistance line
- Quick ratio is deteriorating from mid 2021
- General markets are very expensive, and we all know correlation goes to 1 in selloff.
- Revenue growth is negative ... likely as people become less sensitive to COVID?