It looks like we saw a false downward breakout of the descending wedge this stock has been following since it was at $15 per share. Now we have an upward breakout of this same wedge, and saw a nice rally off major support at the $4.89 line. Wish immediately dropped 30%+ following the release of Q2 earnings, but more importantly has fallen over 42% since that drop which to me suggests that an abysmal Q3 earnings report is both anticipated and priced in. Anything less than a complete train wreck, or forward guidance with any hint of positivity for Q3 and beyond should be met with a decent size rally. If somehow earnings are a full beat this stock has a chance to skyrocket. My initial target is around $7.80 post earnings, with an eventual gap fill at $9.40. If earnings is a complete route (which I see as a low probability, I think revenue will beat but everything else will miss) then all bets are off.
I've posted this in my other updates, but here's a recap of my bull thesis: 1. Buyout candidate for several major players or hostile takeover at this valuation with $1.4b in cash; 2. Major gap to fill at $9.40ish 3. Oversold, beat up beyond anything logical (trades at 1x sales), and reversal seems to be taking place; 4. Prior Zach Morris pump candidate.
GL!
I've posted this in my other updates, but here's a recap of my bull thesis: 1. Buyout candidate for several major players or hostile takeover at this valuation with $1.4b in cash; 2. Major gap to fill at $9.40ish 3. Oversold, beat up beyond anything logical (trades at 1x sales), and reversal seems to be taking place; 4. Prior Zach Morris pump candidate.
GL!
Comment:
Breakout confirmed, up 11.5% as of now. Congrats to anyone else who was in on this trade. I'm going to continue holding as old resistance has now become support, and I think fomo will set in.