Chart is presenting a great Elliot Wave Structure. Theres a good short interest on the stock. Possible short squeeze.
Wave characteristics -
Wave 1 (Complete) - Very good looking wave without any overlaps. nice Fibonacci relationships within sub waves. 3rd was nearly 2x of wave 1. Wave 4 was .23 of wave 3. Wave 5 was almost perfect .382 of 1+3.
Wave 2 (Complete)...
FOXF can be considered a COVID stock. They sell suspensions for mountain bikes and off-road vehicles. As with many other COVID stocks, FOXF is down ~50% from its high just a few months ago.
When looked at with weekly candles since 2016 (7+ years!), we can draw 3 roughly parallel lines reflective of support for multiple years. We are just about to hitting the...
FOXF has been trading horizontally for a few months forming a flat top wedge (bullish) pattern. I expect this may continue until next earnings (Nov 2) wherein the wedge may break bullish. I'll be watching the pattern until then.
As well, many technical indicators are showing weakness from the horizontal trading, and I consider the stock now at a buy point...
$FOXF is now morphing into a more defined inverse head and shoulders continuation setup. Earnings in 2 days. Seems like all nice looking setups have had earnings just a day or 2 out making them hard buys (or gamble buys).
$FOXF cup w/ handle looking good. Green on all IBD rating metrics. The only knock off against it multiple higher than average selling days. OBV reflecting that by sloping down. Vol drying up at the handle is a very positive sign.
Sharing my thought process!
Will most likely have a few more bottom breakouts over the next 9 days before falling on a new resistance.
There should be a decent amount of upper resistance hovering as this happens.
I recently watched a video on that more and more people are ditching their cars and switching to
cycling to work and for weekend rides. Mind you, these are not your usual road bikes but premium ones that costs 5 figures and many are customised to fit to the owners!
It is also popular in India and I think the trend will gets stronger over time!
From the chart...
