The global provider of expedition cruises and adventure travel, Lindblad Expeditions Holdings Inc. (NASDAQ: LIND) seems to be poised for a price surge as per its latest charts.
#1 Flag Pattern: The daily chart shows that the stock was in a strong uptrend after which it started consolidating and was in a narrow range. This is a classic flag pattern, which is a continuation pattern. The flag pattern is marked in orange color in the daily chart. Whenever a stock breaks out of the flag pattern, it typically continues its previous trend which is an uptrend in this case.
#2 RSI Oversold: The daily chart shows that the RSI is currently moving up after reaching oversold levels. This points to a possible reversal.
#4 Near support area: The daily chart shows that the stock is currently near a support area.
This is marked as a green dotted line.
This seems like a good level for the stock to bounce higher.
#5 CCI moving above -100: The CCI indicator value has currently crossed above -100 after moving higher from below -200.
This indicates possible bullishness.
#6 Unbroken Uptrend in Weekly Chart: As evident from the weekly chart, the stock is in an uptrend as it has been making higher highs and higher lows. This uptrend remains unbroken.
#7 Price above MAs: The stock is currently trading above its 50-week as well as 200-week SMA. This is a possible bullish sign.
#8 Fibonacci Support: Usually, after an up-move, stocks retraces to any of the key Fibonacci levels before surging back again. LIND has taken support at the 61.8% Fibonacci support level of the upmove, as seen in the weekly chart. This is a possible bullish sign.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, you can purchase half the intended quantity of shares of LIND at the current price of $16.84 and the rest if it closes above $19.
TP: Our target prices are $22 and $26 in the next 3-6 months.
SL: To limit risk, place stop-loss at $14.95 (for entry near $16.84) and $17.80 (for entry near $19). Note that stop loss is on a closing basis.
Our target potential upside is 15% to 54% in the next 3-6 months.
- Entry at $16.84: For a risk of $1.89, our target rewards are $5.16 and $9.16. This is a 1:3 and 1:5 risk-reward trade.
- Entry at $19.00: For a risk of $1.20, our target rewards are $3.00 and $7.00. This is a 1:3 and 1:6 risk-reward trade.
In other words, this trade offers nearly 3x to 6x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the flag pattern with a high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
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