PERI - Upward and Onward

NASDAQ:PERI   Perion Network Ltd
Perion Network Ltd is an Israel-based global technology company. It delivers online advertising solutions and search monetization to brands and publishers.

The run for digitization during the Covid Pandemic has provided a stellar price increase for the stock followed by a somewhat laggard performance in 2021.

The fundamentals of the company look solid and my personal believe is that the growth potential of the company is not really reflected in the current price. By not being a large US entity the company might have been somewhat overlooked by the market.

Key Fundamentals
  • Solid revenue growth of 41% yoy
  • No long term debt on the balance sheet
  • High operating cash yield of 120%
  • RoI 10.1%

The price seems to form a wedge since its all time highs, currently trading just short of the upper leg of the wedge in what seems to be short term resistance around $20, ahead of the July highs of $24.

Wedge formation since all time high in March
Short term support around $17
Medium term support around $15
MACD trading flat with no clear signal
RSI just short of overbought territory, confirming first resistance (R1)

Potential Long position below current levels, I'd be happy to own the stock anywhere between current levels and $17.I see longer-term upside as long as the earnings maintain momentum. Breaking through the wedge at $20 will be key in the short run however. I would align my exit with current analyst consensus at $28 while maintaining a SL in the $15-17 area.

***Disclaimer: This is my personal view and does not represent trading advice. I publish this as a personal trade log and to keep track of my findings and believes. Do conduct your own research before investing and do not trade what you cant afford to loose.***
Trade active: Opened a cautions Long C Jan 22 $25.
Intending to add regular stock in case of pullback within current formation
Comment: Breakout of wedge formation to the upside on > avg. volumes on Aug 27. MACD also turning positive while RSI is still in ok territory.

Wanting to see to hold $20+ levels over the coming days before increasing my position.
Comment: Confirmed breakout above $20 for now. Overlaying the Fib shows that we currently try to hold the 50% retracement level that would act as technical support in a move higher

Comment: PERI, along with the broader market, has had a bumpy September so far. The wedge is now closed and despite an outbreak the momentum was not enough to push past July highs.

MACD is slightly negative with little momentum to either side.
Currently trading just below the 0.38 Fib.

Still holding my position and might add some more should current levels hold. However I am wary since overall market has lost some steam


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