$74-75 tomorrow looks pretty likely to me, but there should be heavy resistance to move beyond. My guess is a quick retreat to support around $65. If it fails to break $75 then it'll continue into an ABCD correction with the potential trendline and retracement levels marked. Good luck!
* Stock is up 1100% this year.
* It's trading at 27 times sales (not earnings)
* Average price target is $28 and is trading above the high estimate of $61 (low of $9.50)
* it isn't run by Elon Musk.
$38 price is still generous, but like John Maynard Keynes said, “the markets can remain irrational longer than you can remain solvent.”
It looks like the end of the 5th Wave, where Wave 1 was extended and 3 & 5 made up .618 - Wave (5) is a contracting ending diagonal and It is bounded by two converging trendlines (red). A swift and sharp reversal usually brings prices at least back to where the diagonal began and usually far further. The reversal usually takes anywhere from one-third to one-half...
Barring no stimulus is passed and the market doesn't crash then I see it bouncing somewhere between $65 - $66 with resistance at $68, 73, and $76 moving back up. A breakthrough would probably mean $85 as a first target.
U.S. just hit 160K new covid cases and there's no sign of slowing down. In fact, it's exponential growth (more than 100%) in November alone. That alone should cause the rally to pause and retreat to support, but the economic data has been promising and DKNG's just raised their guidance with one caveat - "As long as there are no disruptions to sports due to Covid"....
Once the Euphoria wears off, I think we'll see steady decines for the next several months.
* No Vaccine
* Contested Election
* GOP Lawsuits
* New Covid Cases hit 100K today
* Rising Covid Cases
* Unemployment is running out for Millions of Americans with no stimulus in sight.
The price action is mind blowing and I'd predict significant declines over the next...
So far support has held and CODX may still be bullish... However, it was a bullish day on lackluster earnings. Look to see if support holds and we'll see if the stock can break through the 100 MA. After 100 MA it should have smooth sailing to 19+. I have a feeling that a bullish opening will tomorrow the market will runup to the 100 MA and quickly retreat... But...
I'm waiting for earnings to come out... A market close at or below $16.87 will indicate a hard move down. The blue lines are the downtrend support and resistance. The dashed red line is the (potentially) false breakout line and may turn into the downtrend line as it did before.
The combination of a Bearish Downturn, Elevated VIX, COVID, Election Year, Multiple Misses on Earnings, No Stimulus, Potential Contested Election the day after their earnings, and Few Prospects in the coming months... But it still has to close under $16.