Conviction: 3/5
For:
Against:
For:
- RSI-W reached historical (short-term at least) bounce levels
- Seem to hold resistance level around 158
- Typically EW retracement after 5 waves goes to 4th wave of previous wave, which is around where our support is.
- Quick ratio is pretty healthy (>2)
- RSI-M at level of last bounce (40-50)... although not usual low where major trends reverse (30-40)
Against:
- Macro environment is unfriendly
Stock is expensive on P/S metric, more prone to selling
- Still a long ways to fall before any significant support (green line: 2016), current time suggests $70 ish bottom
- History is short, not much volatility time periods, perhaps only 2018 (raising rates?)