Global-E Online Ltd (NASDAQ: GLBE) seems to be poised for a price surge as per its latest charts. The company, together with its subsidiaries, provides a platform to enable and accelerate direct-to-consumer cross-border e-commerce in Israel, the United Kingdom, the United States, and internationally.
Bullish Indications
#1 Channel Breakout: The daily chart shows that the stock has currently broken out of a downtrend channel. This channel is marked in the chart as purple color lines. Once the stock breaks out from a downtrend channel, it has the potential to move further up.
GLBE – Daily Chart
#2 Price above MA: The price is currently above the short-term moving average of 50-day SMA, indicating that the bulls are gaining control. This is a positive indication.
#3 MACD Above Signal Line: In the daily chart, the MACD line (light blue color) is currently above the MACD signal line (orange color) which is typically considered bullish.
#4 Bullish ADX: The ADX indicator shows that the +DI line is currently above the –DI line and the ADX line has started to move up from below –DI and +DI lines. This indicates possible bullishness.
#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 Above Support Area: As you can see from the weekly chart, the stock is currently moving higher from a support area. This level is marked as a pink dotted line. This looks like a good area for the stock to move higher.
GLBE – Weekly Chart
#7 Bullish MACD: The MACD line is above the MACD signal line in the weekly chart as well, indicating bullishness.
#8 Bullish Aroon: In the weekly chart as well, the value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30. This is a possible bullish sign.
#9 Bullish ADX and DI: The weekly chart shows that the +DI line has currently moved above the –DI line and the ADX line is starting to move higher from below the –DI and +DI lines. This indicates possible bullishness.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, you can purchase the shares of GLBE above the price of around $34.60.
TP: Our target prices are $39 and $44 in the next 2-6 months.
SL: To limit risk, place stop-loss below $32.00. Note that the stop-loss is on a closing basis.
Our target potential upside is 13% to 27% in the next 2 to 6 months.
For a risk of $2.60, our target rewards are $4.40 and $9.40. This is a nearly 1:2 and 1:4 risk-reward trade.
In other words, this trade offers nearly 2x to 4x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the trend channel 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
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