SFIX gapped down strongly on 8 March after earnings, leaving a lot of suffering bulls who had betted on the wrong side of this earning. The stock finally hit a low on 11 May and began it's recovery, cummulating to a strong gap up on 7 June, this time on earnings exceeding expectations.
However this gap up was right where the prior gap (down) got filled. Those long suffering bulls who had previously betted on the wrong side of earnings saw it as their chance to exit at breakeven or smaller losses. This pushed the stock back down until the most recent gap (up) got filled @ 57.94 (support).
Having establised a support at 57.94, it's now safe to bet on it's uptrend continuation with initial stop loss several ticks below this support. Short term traders can consider to scale out at the 100% and 161.8% extension levels.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)
However this gap up was right where the prior gap (down) got filled. Those long suffering bulls who had previously betted on the wrong side of earnings saw it as their chance to exit at breakeven or smaller losses. This pushed the stock back down until the most recent gap (up) got filled @ 57.94 (support).
Having establised a support at 57.94, it's now safe to bet on it's uptrend continuation with initial stop loss several ticks below this support. Short term traders can consider to scale out at the 100% and 161.8% extension levels.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Thank you. Do give me a thumbs up if you agree. Feel free to let me know what you think! :)