Jumia has dissapointed investors due to its slow growth expressed in both, weak figures and a lack of onboarded customers. That being said, a price reaction can be clearly seen on the charts. However, Jumia has chosen the African continent as its target market and wants to be the Amazon dominating ecommerce. This gives tremendous opportunities to grow. Analysing this company fundemantally and despite the weak performance, I would say it is massively undervalued. For instance just looking at one aspect, they have built a logistics system that is worth more than 20 billion USD.
Lets get to the technicals:
Jumia has taken a shocking price hit, down from about 60 USD to around 10 USD. And I wouldn´t be surprised if this continues, even down to around 5 USD. However, I think price will find strong support at the 8 USD level. Main reason for this is that price is oversold on the weekly basis (check RSI), and fundamentally the valuation is at about 8 USD as well.
So whats my play here?
Short Term: Short Medium Term: Short Long Term: Long
Tbh, I have opened positions ever since the 20 USD mark and I keep adding, as I really believe this company has a 100X potential in less than 10 years.
Cheers,
Thatwalletguy
PS. No financial Advice and do your own research!
Trade active
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First Entry reached. Lets see if we get to Entry 2, but right now it doesn´t seem so. Updates will follow soon from my side