In short, it’s at a critical juncture and setting up for a promising trade.
At the bottom end of the trading range here, the stock is ripe for a bounce trade.
It’s been a rough few months to say the least. However, the stock is now sitting at an important technical support area where a bounce looks likely.
Here’s one way to trade it for a profit.
In short, it’s dancing on a thin line of technical support.
It’s been on a wild ride year-to-date, and to me it looks like the path of least resistance is lower.
After a cool 20% rally following an earnings beat, it’s overbought and nearing a setup to short it for a trade.
It recently dropped 20% following the company’s latest earnings report. As a result, it’s reached extreme oversold readings that could lead to a pop in the stock.
It now pays to be tactical and measure the next targets one at a time.
It hasn’t been immune to the recent stock market volatility, but now looks increasingly oversold, making it a promising bounce candidate for the active trader.