QS IS THE MOVE

SPICE ALGO INDICATOR IS FIRE! IT IS A MUST HAVE!

QS is a solid stock and is a very good long term stock. Think about Warren Buffet buying all the oil and gas, now its electric... who will be the next Warren Buffet....

The Federal Reserve might be easing its foot off the broader market’s gas pedal. But when it comes to QuantumScape (NYSE:QS) stock, conditions are looking positively charged for big-time profits.

A QuantumScape sign at the company's headquarters.
Source: Michael Vi/Shutterstock.com
With that in mind, let’s explore a bit of what’s happening off and on the price chart of QS stock. Then, we will offer a risk-adjusted determination aligned with those findings.

Just this week, a decision from the Fed to taper its longstanding commitment in the bond market has been a major story. And this news has provided fuel for a handful of stocks in return.

Not that anyone is paying any mind or can be found quickly giving reasons as to why the move is a positive for stocks. Yet, in the scheme of things those developments, good or bad, have little to do with QS stock.

Since going public via a special purpose acquisition company (SPAC) deal with Kensington Capital less than a year ago, QuantumScape has been largely detached from broader stock averages sporting double-digit gains and hitting record highs in 2021. And this applies to both positive and negative moves for QS stock.

From a rapid stock ascent in the fourth quarter of 2020, to this year’s implosion that saw QS stock shed 80% from its peak share price of $132.73 by mid-August, make no mistake this isn’t a well-correlated stock like Microsoft (NASDAQ:MSFT) or Home Depot (NYSE:HD).

The other thing is this: QuamtumScape is a pre-sales and untested concept-stage venture aiming to jumpstart electric vehicles’ (EVs) still-apparent battery shortcomings with next-gen multilayer, solid state technology.

If it pans out, expect a multi-bagger opportunity to unfold. However, QS stock is not for those that wait for traditional metrics to play out.

QuantumScape’s sales black hole is going to remain a reality for QS stock investors for the foreseeable future. The outfit doesn’t expect a working battery for deployment into partner Volkswagen’s (OTCMKTS:VWAGY) EVs before 2024 and maybe not until 2025.

The good news, though? QuantumScape’s obvious request from shareholders to have patience isn’t necessarily a bad thing. The stock market is about future expectations and pricing shares with forward-looking efficiency, right?
Chart Patternslong-term

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