2 On the weelky we reverse to the upside but we did not rebounce from the actual low and the stock fall lower.
3 Divergence on the weekly Low low
4 We are testing the 1.618 FIB level of the previous weekly rally (Reversal on daily)
5 + Logic volume to suggest a rebounce from the 1.681 FIB level.
Comment
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Long still valide
Trade active
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P/B 0.37 = Cheap asset
Net margin to -13.67% to -109.85% = don't panic, net margin drop for multiple reason like buying asset for the US expansion.
Debt to Equity at 0.16 = except if a catastrophe happen, DOC will have enough liquidity to continue activity.
Price to Free Cash flow -75 to -2.90 = (-75/-2.9 = 25.8x) = you pay 25.8x cheaper the future free cash flow that DOC will produce. It mean that this price is fair to buy.
After the last earning, the volume drop drastically and the volatility increase.
Systemic risk didn't help either and market drop hard.
Fewer people are selling share (Drop in volume) and indicate that the momentum could change.
On a macro perspective, everything going as expected. Tele Health will increase productivity in the health sector, give medicals services to more people with more reasonable fee and public institution are now seeking to modernize the current system. Even as we enter in a recession that nobody know how long will it last, Tele health company will have "friendly" environment and will growth despite a recession.
Everyone here overuses the FIB level! Does anyone actually know how to use it? If it is so simple you will turn a profit. So, the hypothesis is at fault! Any donkey can drop the FIB level on the chart. Has anyone learned how to do a full FIB calculation? Also, have the ball to admit you are wrong and update the analysis!
Leroux
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@Nateli8889, Just drop a uptade if you are still interested. Fib level are not use to predict the market. After DD, you can use fib level to project price level to set limit order but never use Fib as a core element of your investment/trading hypothesis. You cant approach the market in a rigid way because nobody can perfectly predict the day the market will tank and create a panic in other market. You need to adapt as the story unfold.