COUR (Long) - Impressive relative strength in a choppy market
Fundamentals
Technicals
Trade
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- I do not wish to dwell on fundamentals too much; I am more impressed by price performance and I am always guided by the price as I consider the collective wisdom of the market the best indicator
- However, the growth of the company has still been strong, with sales consistently rising by 20% and above
- Mainly though, Coursera has future - education does need to undergo a digital revolution and in this sense, the firm has a strong competitive edge. Hence, I would not discourage anyone from taking a longer-term position in the company
- But this trade is focused on a more of a 6-month outlook
Technicals
- As I tend to, I have been watching the price of
COUR
for over a month; the price has done a decent climb and has been orderly consolidating for the past month.
- Despite the turmoil in the broader markets, the price has never substantially decreased
- Over the past year, it has formed a robust base built on top of an immaculate double top pattern
- I am also big fan of the impressive relative strength against the S&P500 which can be seen at the bottom of the chart
Trade
- I have not entered the trade myself as I am still waiting for a confirmation that the trend is going to continue upwards
- One could enter now at a better price, but the probability that the trade works out is lower; a clear breakout would give the idea more validity
- The bottom of the consolidation range represents a clear stop-loss option
- My main caveat is that I am pretty bearish on the overall market in the next 6-month window. So although the stock does not have to necessarily plummet down with the market, it will certainly complicate its upward trajectory. Hence, I would advice for some patience if you decide to go with the trade.
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