I've posted quite a few short trade opportunities lately, but this one is a bullish setup.
With any new post-IPO there can be opportunity to take advantage of wild swings in the first couple months of trading. LYFT (like UBER) went straight into the doghouse with wider than expected losses for the newly minted stock. It's trading ~50% lower than it's all time high (first day of trading). Sometimes with no good news on the horizon, stocks can just drift lower with no catalyst. Eventually, price starts to look appealing and there's divergence in the downward momentum. LYFT looks like a good candidate here to ride it up 20% into the 50s. Daily PSar would confirm breakout, however RSI is already breaking out and MACD is beautifully diverging about to cross. According to WSJ, the stock is shorted at ~14% of the public float and could make a decent short squeeze.
Let's see if LYFT can get some...LIFT!
With any new post-IPO there can be opportunity to take advantage of wild swings in the first couple months of trading. LYFT (like UBER) went straight into the doghouse with wider than expected losses for the newly minted stock. It's trading ~50% lower than it's all time high (first day of trading). Sometimes with no good news on the horizon, stocks can just drift lower with no catalyst. Eventually, price starts to look appealing and there's divergence in the downward momentum. LYFT looks like a good candidate here to ride it up 20% into the 50s. Daily PSar would confirm breakout, however RSI is already breaking out and MACD is beautifully diverging about to cross. According to WSJ, the stock is shorted at ~14% of the public float and could make a decent short squeeze.
Let's see if LYFT can get some...LIFT!