Cup & Handle - BROS (Monthly Chart)

позавчера

As you can see in the monthly chart of BROS, a cup and handle pattern is forming.

The price target of a cup and a handle is the depth of the cup but starting from the the handle's ending candle.

In this graph, you can see that I'm using a little conservative price target: the price target is not from the end of the handle, rather from the support around 47.

That is because the cup depth from the handle would give us 100%+, and though I like such results, I'm a little conservative when it comes to trades of above 50% gain, regardless of trade length (and it's more of personal risk management and it works for me but maybe someone else can see this as a clear sign of consistent buying until PT).

Fundamentally, the earning of 5-Nov-2025 after market, shall play a huge role in succeeding the completion of the cup and handle price target.

My short term price target is 62, and the reason for that is the 20-Aug-2025 and 15-Sep-2025 role reverse from support to resistance (Daily Chart), and considering BROS volatility, it's conservative, yet, risky in nature.

My medium term target is 77.5 which is the highest from the body candle from the left of the cup and handle and not the second one of 79.16, and again, the reason for this is because I want to take a more conservative approach as BROS volatility may hurt high risk-intolerant traders.

The long term target is 105 due to the cup and handle depth.

Generally, I'm a high risk trader. However, with current market conditions and the current phase of uncertainty in U.S. equities due to government shutdown and volatile policies (especially tariffs), one might want to seek more conservativeness in their trading.

That being said, BROS is fundamentally one of the best growth stories I've analyzed. Revenues, earnings, cash management and funding, operational execution, etc., combined they check out the marks of a good investment. Yet, also fundamentally, it has a lot of optimism priced in, and as of this writing, we are confronting investors fears from the current uncertainty, high valuations, and profit taking period. we might see some selling pressure after a strong hike (assuming positive/expectations beat in earnings) due to profit taking and uncertainty. It has a very high valuation comparing to its peers, yet, it also has great growth comparing to its peers...

Not a financial advise, just a guy behind a screen.

Please do not hesitate to share your opinions, as long as it's logical.

18 часов назад

Сделка активна

So, seems that investors aren't happy.
One article suggests the reasoning to higher expansion costs. Valid reason, not convincing though.

My take, dumb reason, price targets by analysts are biased, and it has always been, never expect it's unbiased.
Take it as a rule of thumb.

Even though guidance is raised.
Even though earnings and revenues beat the expectations.
=Price is down.
Reason: pricing in too much optimism by investment managers.

But, focusing on the bigger picture here, we have a company with increasing operational performance.
Small picture, now it is expected to cost more to open new stores.

Long term, the price target no switched to 86.8, the highest high in the chart.
Reason: get more conservative when everyone is being conservative.

Remember: if all the dumbs are saying 1, and the true and smart answer is 2, then it's smart to say 1, and saying 2 is dumb.

18 часов назад

Заметка

In after hours it had a quick spike, and after market open we saw a lot of selling pressure.
I did expect selling pressure due to current uncertainties, but what I didn't take into consideration is very high selling pressure.

I made a mistake of not taking into account the fact that the current economy is being inflated and might increase expansion costs.