GEO broke out of 4-year long downtrend, multi-year falling wedge pattern on massive volume and is now in the process of backtesting that breakout which could be an amazing opportunity to buy in. Golden mean ratio of Fib retracement is at around $23 which is confluent with historical resistance level and I believe this would be the minimum target of this trade if trend really reverses here.
On fundamentals side the company seems severely undervalued looking at its profitability and P/E ratio and is VERY heavily shorted which is probably what caused this breakout in the first place.
I think we are looking at a beginning of something really huge and while it might take some time, I believe GEO is headed to $23. In hindsight the signs were clear with massive bullish divergence on both oscillators in oversold territory on previous two lows. It doesn't get much better than that and the price retraced over 35% since top of that spike bringing it to a point where one might consider opening a position.
With entry now ($7), SL below $5 and PT at $23 we are close to stunning 9:1 R/R ratio. It just doesn't get much better than that from TA perspective and keep in mind we are talking about profitable company with good mcap and volume! And if it goes back to $5 to double bottom there it will only look better for the long run so it would be an opportunity to massively add to a position or open one. I'm keeping close eye on this gem.
On fundamentals side the company seems severely undervalued looking at its profitability and P/E ratio and is VERY heavily shorted which is probably what caused this breakout in the first place.
I think we are looking at a beginning of something really huge and while it might take some time, I believe GEO is headed to $23. In hindsight the signs were clear with massive bullish divergence on both oscillators in oversold territory on previous two lows. It doesn't get much better than that and the price retraced over 35% since top of that spike bringing it to a point where one might consider opening a position.
With entry now ($7), SL below $5 and PT at $23 we are close to stunning 9:1 R/R ratio. It just doesn't get much better than that from TA perspective and keep in mind we are talking about profitable company with good mcap and volume! And if it goes back to $5 to double bottom there it will only look better for the long run so it would be an opportunity to massively add to a position or open one. I'm keeping close eye on this gem.
Trade active:
Approaching buy zone, might be time to start laddering in,
Trade active:
Adding more at current level. 7.35 is a critical support.