On the above 10-day chart price action has corrected a whopping 80% since July. The correction follows the 200% move that printed from May this year, idea below. The majority that have sold since July did so at a loss. Now is an excellent long moment. Why?
1) Price action, RSI, MFI resistance breakouts.
3) Regular bullish divergence. Just as will the idea published in May multiple oscillators are now printing positive divergence with price action.
4) No stock splits.
5) High short interest. Again! Just as with the published idea in May, short interest peaks, ie. Put contracts exceed Calls! What’s wrong with people? Almost as if burning cash with fire is not fast enough.
In the month of May, 2023 "Off-Exchange Short Volume Ratio 48.48%"
December 2023 “Off-Exchange Short Volume Ratio 42.43 %”
source: fintel.io/ss/us/vrm
6) Some other stuff, will say elsewhere.
Is it possible price action falls further? Sure. Is it probable? No.
Ww
Type: investment Risk: <=6% of portfolio Timeframe for long: The remainder of the year. Return: Don’t know Stop loss: not written here
Sorry but investing in e-commerce car sales at this point if time, when people are hit with higher loan rates ... Doesn't make sense. Maybe it will print, but is it really worth the risk ?
without_worries
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@hushedFinance18141, This is a chart analysis founded on probability and nothing else. Probability analysis has served me well over the years. Now if it is fundamental reasoning you seek, I agree, makes no sense on the surface. However there is an convincing argument. This is a US based business providing cheap cars direct to the door at a time when the economy is entering a downturn. Yes interest rates are higher as is insurance costs in the US. And that is exactly where a business like this should thrive. If you want lower insurance costs, drive something older and cheaper, simples. Forget new cars. That e-commerce car sales business will be hitting the rocks any minute.
Latterly American residents do not have a choice like their peers in Europe. In Europe there are trains, subways, buses, trams, in the US commuters only have the car as an option. I will finish on one interesting fact when this stock popped in May of this year, link below, this business is expanding rapidly as the economy tightens, restricts as others fail. Make of that what you will but I think it would be unwise to ignore this change in performance.
@hushedFinance18141, I've noticed they have announced a possible reverse share split, that's not good! These small caps really are Vegas, very small position sizes only! Merry Christmas!