Well...Actually, I don't think that the "Support Theory" is working for Viac at this time. Too much speculation around this stock. For example, its MAIN "secular" support at 68$ that was tested once in 2014 and twice in 2017, during the last collapse was broken down without any re-test. Something similar happened to BBBY when it crashed at 13$. A few days later, it got back to a secular Support at 22$. Too many short positions around. Viac short interest is not that high (I mean not like it was for BBBY) but it's clearly a manipulated stock. For this reason, my thought, of course, at this point a "tech analysis" to predict the trend is very difficult. It is worth considering that Viac has a 7 p/e and the Market value/Revenue is 0.85!! Its direct competitors: Netflix, considered a giant but with almost the same revenue as Viacom has a 60 p/e and almost 10X Market Value/Revenue ratio and Disney has 270 p/e and 10X Market Value/Revenue. At 70$, VIAC p/e should be at 15, and its Market Value/Revenue Ration 1.8X (anyway much, much cheaper than Netflix and Disney) . Netflix cannot be considered anymore a "growth stock" cause its revenue grew the same % as VIAC revenue. about Disney...it's definitely not a "growth stock" so...their multiples don't make any sense at all. We'll see how it will finish this "gambling".
Damako
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@giloc, TA is just a probabilistic analysis- not certainty. Everything is possible. The analysis just points to what is likely probable. TA is not 100% correct. The three of them have good earnings, but no matter how good the fundamentals are and how good the technical analysis is when market sentiment decides, even if they have the same percentage of revenue.
giloc
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@Damako, I agree. I was not suggesting that you are wrong. I only think that at this time there is too much manipulation on this stock. As I wrote...look at BBBY. Morgan Stanley downgraded the stock to 12$. It plunged to 13 and a few days later it got 30$ in After Hours. Now around 22$. There is NO TA that can forecast something like that and about VIAC...the situation is not the same but... Cheers.
Damako
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@giloc, Cheers, Yes yes, there are always manipulators in stocks, so because of that the stock market becomes a gamble, but we can’t blame them because we ourselves manage our money.