Conviction: 3/5
26.8 looks like a better entry
Main thesis
Misc Info
Potential Risks
26.8 looks like a better entry
Main thesis
- So far (mid week) bounced off of dark blue channel (2020) support.
- RSI-W touched historical bounce area (however, if we wait for bullish divergence there could be another leg down)
- Leg down could coincide with .786 retracement (26.8)
- RSI-D showing bullish divergence
Misc Info
- P/S level of 9ish is high on absolute level, but on lower end of range relative to other high growth names
- As a reference, S&P 500 P/S is 3 right now.
- High margin and high growth
- Very healthy quick ratio
Potential Risks
- RSI-W is still languishing at oversold levels, better to wait for a clearer signal
- Channel (2020) is super short, and does not include last major recession (2008)
- General markets are very expensive, and we all know correlation goes to 1 in selloff.
- High growth / expensive names seems like will sell off more than general market
