On the above 10-day chart price action has corrected 98% since 2021. Now is an excellent long moment. Why?
1) You know why.
2) Price action, RSI, MFI resistance breakouts.
3) Bullish divergence. Lots of it. 9 oscillators are printing positive divergence with price action.
4) No stock splits.
5) High short interest. A number of hedge funds as well as private asset management firms have high short interest exposure. After a 98% correction?! Who does that? As it turns out most of tradingview.com also are short. Don't take my word for it the search button is only a click away..
Is it possible price action falls further? Sure. Is it probable? No.
Ww
Type: investment Risk: <=6% of portfolio Timeframe: before summer Return: Don’t know Stop loss: not written here
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Not that I pay much attention to financial statements, but this came out yesterday after market close:
“VROOM INC - COMPLETED REDUCTIONS IN FORCE IN JANUARY AND APRIL RESULTING IN APPROXIMATELY $42.0 MILLION OF ANTICIPATED ANNUALIZED COST SAVINGS”
Saving money - good.
And..
“Vroom (VRM) came out with a quarterly loss of $0.54 per share versus the Zacks Consensus Estimate of a loss of $0.58. This compares to loss of $0.71 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 6.90%. A quarter ago, it was expected that this company would post a loss of $0.68 per share when it actually produced a loss of $0.47, delivering a surprise of 30.88%.”
The market is overly bearish, which is not the reality. Not only is this reflected in the statement but also the high short interest. Which came first? The chart or the news?
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on support
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re-accumulate under 1 dollar
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Up around 60% since this time last month. 'Mind the Gap', it is a large gap down to 95 cents as price action appears heavily overbought on the daily.
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Great to see price action up around 100% now since publishing. However a significant bearish divergence continues to build. If you missed out, wait for the higher low to print. Will update elsewhere when this happens.
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Now up 150% in 60 days, amazing. Why does everyone rave about Crypto? ;-)
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Love those patterns.. only a few charts in the whole of the NASDAQ at this time print like this at the moment.
This was VROOM (VRM).
Anyone know what this one is? Will share on the private idea.
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Well done if you tool profits after this 200% move. Can you see where support is? Will identify this level elsewhere...
1-day
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Approaching support at a fair rate of knots. Com'on sellers, limit order waiting...
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close swing trades from 1.20 until 90 cents
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Is it time to get back in? How do you know?
A number of folks bought around 2.50 but my impression is the market needs to feel more pain, there's no evidence they have capitulated just yet. It should be obvious when it happens. Might tap 60 cents, will wait for a signal to print first.
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Awesome, sellers have returned price action back to support.
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PS> Yesterday's update was not a notification to long. It is not possible until support confirms, or indeed a signal prints if you're using the tools.
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support confirmed
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Capitulation, grab it..
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Time to start nibbling. Hard to believe there are folks who bought at 2.70 only to see a 80% correction weeks later. Do we think they were using a strategy? Or emotion?
Let's please not say "hope you bought the fear" if it rebounds back to a dollar. The whole reason it tripled in the first place was likely insider trading, grabbing all the liquidity possible knowing the company wasn't doing well and bagging the buyers. This is exactly why I don't touch penny stocks anymore. Yeah they can really run but when the run is over, it's ugly.
AMIT-RAJAN
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Great chart!! thank you for posting
ArtfulDodger1974
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Looks like the scammers dumped their bags on retail as usual. Shocker.
Would you mind sharing your view on Carvanna stock ? Its heading towards support level on the low 20's and potentially bouncing off it . It looks like a retest of an inverse head and shoulders .
without_worries
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@juarezhernandez164, Funny you mention that one.. sold it a couple of month ago. Was purchased before I started sharing stock ideas on elsewhere. One of the better ones this year.
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juarezhernandez164
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@without_worries Any future thoughts on it ? An uptrend to past highs possible with meltup or boring consolidation ?
Let's please not say "hope you bought the fear" if it rebounds back to a dollar. The whole reason it tripled in the first place was likely insider trading, grabbing all the liquidity possible knowing the company wasn't doing well and bagging the buyers. This is exactly why I don't touch penny stocks anymore. Yeah they can really run but when the run is over, it's ugly.