Root rejected at old support (14) now turned into resistance. Near term support trendline also broken, and likely to find support on the bottom of the long term (yellow line) falling trendline. Price target: $10. Will watch this area for potential reversal. A DB may be in play if 10 level holds.
Fundamentally, nothing to provide a counter to lower lows. Stock remains priced above valuation, particularly in car insurance sector.
This is one way to look at the chart, but there are a lot of other factors to consider. I believe, it is much higher risk to assume that that value would continue to fall below such a heavy support line (at $14) especially with the increasing amount of inflow and buying volume ROOT has experienced in just the last week. Short interest is increasing, days-to-cover decreasing, Citron just released a bullish review of the company, and the company currently looks undervalued.
Fundamentally, they've had increasing revenue and customer acquisition at an exponential rate. If they were to infiltrate other state's insurance markets, it could be a catalyst to send this stock much, much higher.
Fundamentally, they've had increasing revenue and customer acquisition at an exponential rate. If they were to infiltrate other state's insurance markets, it could be a catalyst to send this stock much, much higher.