The company that provides expedition cruising and adventure travel experiences, Lindblad Expeditions Holdings Inc. (NASDAQ: LIND) seems to be gearing up for a surge as per its latest charts.
#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock has currently broken out of a Symmetrical Triangle pattern. This is a continuation pattern and is characterized by two converging trend lines connecting a series of sequential peaks and troughs. This pattern is marked on the daily chart as pink color dotted lines. A breakout from a symmetrical triangle pattern usually signifies the start of a bullish move.
#2 Price above MAs: The price is currently above both the short-term moving average of 50-day SMA and the longer-term moving average of 200-day SMA. This usually implies a possible bullish bias for the stock.
#4 Trend Channel: The daily chart shows that the stock had formed a trend channel in the last few months. This is marked as purple color lines. Currently, the stock is near the upper rail of this trend channel. Once the stock breaks out of a channel, it usually moves higher.
#5 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the daily chart. This indicates possible bullishness.
#6 Bullish ADX and DI: The ADX indicator shows bullishness in the daily chart because the (+DI) line and the ADX line are greater than the (-DI) line, and the ADX line has started to move up from below (-DI) and (+DI).
#7 Above Support Area: In the weekly chart, we can see that the stock is currently trading above a strong support area, which is marked as a pink color dotted line. This is a possible bullish indication.
#8 MACD above Signal Line: The MACD line (blue color) is currently above the signal line (orange color) in the weekly chart as well, indicating a bullish bias.
#9 %K above %D: The %K line of the stochastic is currently above the %D line in the weekly chart, indicating possible bullishness.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal entry level for LIND is above the channel breakout level, at around $12.50.
TP: Our target prices are $17 and $20 in the next 3-6 months.
SL: To limit risk, place a stop loss at $9.60. Note that this stop loss is on a closing basis.
Our target potential upside is nearly 36% to 60% in the next 3-6 months.
For a risk of $2.90, the target rewards are $4.50 and $7.50. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers nearly 2x to 3x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the trend channel. 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 its sector.
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