The direct-to-patient telehealth company that connects consumers to healthcare professionals for care across various indications, including concierge care, men’s sexual health, dermatology, and others in the United States, LifeMD Inc. (NASDAQ: LFMD) seems to be poised for a price surge as per its latest charts.
Bullish Indications
#1 Falling Wedge Pattern Breakout: As you can see from the daily chart, LFMD was trading within a falling wedge pattern during the past few weeks. This is marked in the daily chart in purple color. Currently, the stock has broken out of the falling wedge pattern. A Falling Wedge Pattern is a bullish pattern. Once the stock breaks out from it, it has the potential to move further up.
Daily Chart – LFMD
#2 MACD above Signal Line: The daily chart shows that the MACD line (blue color) is currently above the signal line (orange color). This is a possible bullish setup.
#3 Above MA: In the daily chart, the stock is currently trading above its 200-day SMA. This implies that the bulls are currently in control.
#4 Bullish Stochastic: The daily chart shows that the %K line is above the %D line in the stochastic. This indicates that an upmove may be imminent.
#5 Bullish ADX and DI: The ADX indicator shows bullishness because the (+DI) line is greater than the (-DI) line, and the ADX line has started to move up from below (-DI) and (+DI).
#6 Double Bottom Pattern Breakout: The chart shows that the stock has broken out of a double bottom pattern. This double bottom pattern is marked in pink color. A double bottom pattern is a bullish reversal pattern and the breakout from it usually indicates that the stock could possibly move upwards.
#7 Above Resistance Area: The weekly chart shows that the stock is currently trading above a strong resistance area, which is marked as a blue color dotted line. The stock is also above its 50-week as well as 200-week SMA. All these are possible bullish signs.
Weekly Chart – LFMD
#8 Bullish RSI: The weekly chart shows that the RSI is currently near 50 and moving higher. This is a possible bullish indication.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for LFMD is if the stock closes above its 50-day SMA. This translates to a price of around $12.90.
TP: Our target prices are $17 and $20 in the next 4-6 months.
SL: To limit risk, place stop-loss at $10.30. Note that the stop loss is on a closing basis.
Our target potential upside is 32% to 55% in the next 4-6 months.
For a risk of $2.60, our target rewards are $4.10 and $7.10. This is an almost 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 from the falling wedge 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.
Happy Trading!
— Tara
This is the #1 Stock to Buy for the AI Tidal Wave [sponsor]Marc Chaikin warned people about NVDA before its 2023 bull run - now he's naming his next pick or the AI tidal wave. Learn more here.