SMPL: ABC correction completed, stock goes higher

SMPL has completed an ABC correction in which C = 1.618 extension of the A wave. I am going to call the move off the March lows a Wave 1, with the low on 5/2 being the bottom of Wave 2. As long as that low of $15.91 holds, the stock will proceed higher in a Wave 3 to reach the minimum price objective just over $22, but can extend to at least $26 prior to a correction (these are the 1.0 and 1.618 targets respectively). Specifically I am eyeing a move to the $22.5 level which had acted as a key support level prior to the February selloff.

The 5 day EMA just eclipsed the 20 EMA on Friday 6/4, which shows the short term momentum is strong enough for the stock to break the 50 day EMA and begin, what should be, a powerful move higher.

Stock has also formed a double bottom / Inv . H&S pattern during this near 3 month consolidation.

I am confident this stock will move higher


I hope today's daily dojo candle is not a bad sign, I am long from 16.5
+1 Reply
ETrades1 sumtinwong
@sumtinwong, I would say because the wick of the candle bounced off the 50 EMA which was today crossed by the 5 day EMA, I'd call this stock innocent until proven guilty. Tomorrow will be pivotal, but I am holding another stock in this sector and it pulled back today as well, so I expect a resumption of the uptrend into the end of the week. I think you got in at a good price and I hope my analysis holds up.
ETrades1 sumtinwong
@sumtinwong, still in? Tomorrow should be a good day for this stock
+1 Reply
sumtinwong ETrades1
@ETrades1, I am still long, had a limit sell yesterday actually at $20, but it obviously didn't fill. I'm in it for the long term though. Thank you for the update!
+1 Reply
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