Duolingo, Inc.Long
Technical Analysis: Duolingo Inc. ($DUOL) Daily Chart
1. Trend Analysis
Primary Trend:
DUOL has been in a strong uptrend since mid-July, as seen by consistent higher highs and higher lows.
The price is currently trading well above the 200-SMA (~$236.95), which confirms a bullish long-term trend.
Current Structure:
Price recently encountered a resistance zone near $378.85.
A consolidation zone is forming around $340–$354, highlighted by the Darkpool Activity Zone.
✅ Bullish Note: Price holding above the Darkpool Zone indicates potential for continuation higher.
2. Resistance and Support Levels
Resistance:
Immediate Resistance: $378.85 – where price recently rejected.
Breakout Target: If $378.85 is breached, the next psychological target would be $400.00.
Support:
Darkpool Zone: $340–$354 acts as key support (highlighted in blue).
SMA 200 Support: At $236.95, the 200-SMA provides strong long-term support.
✅ Key Observation: If price holds within or above the Darkpool Zone, buyers remain in control.
3. Darkpool Insights
The Darkpool Premium of $54,582,34.0 at ~$354 reflects strong institutional activity.
This level has held as support, and institutions may be accumulating here.
4. Momentum and Volume
Volume:
Recent candles show balanced volume as price consolidates near support.
A breakout above $378.85 with increasing volume would confirm bullish strength.
Squeeze Momentum (Bottom Panel):
Bullish Momentum: Blue histogram bars suggest upward pressure remains intact.
Momentum is cooling slightly, so the price may consolidate before its next move.
5. Fundamental Details (as per Chart)
Revenue Growth: 43.74% 🚀
Strong revenue growth indicates Duolingo's robust business expansion.
Free Cash Flow Margin: 26.35% 💵
High cash flow margins reflect the company’s ability to efficiently generate free cash, which supports operations and reinvestments.
X-Value: 41.1 📊
A combination of growth and margin metrics, highlighting Duolingo’s strong fundamental positioning relative to peers.
✅ Fundamentally Strong: Revenue growth and healthy cash flow margins support the bullish outlook.
6. Summary of Analysis
Bullish Signals:
Uptrend Intact: Price remains above the 200-SMA and consolidates near highs.
Darkpool Support: Institutions showing interest in the $340–$354 range.
Strong Fundamentals: 43.74% revenue growth and 26.35% cash flow margin validate the bullish structure.
Key Risks:
Resistance at $378.85: A rejection here could lead to a pullback toward the Darkpool Zone (~$354).
Momentum Cooling: Squeeze histogram suggests consolidation, so patience is required.
Trade Plan
Breakout Entry:
Buy above $378.85 with a target of $400.00 or higher.
Confirm breakout with volume.
Pullback Entry:
Buy near the Darkpool Zone ($340–$354) if price retests this level and holds as support.
Stop-loss: Below $340.
Stop-Loss:
Conservative: $340.
Aggressive: Below the 200-SMA (~$236.95).
Primary Trend:
DUOL has been in a strong uptrend since mid-July, as seen by consistent higher highs and higher lows.The price is currently trading well above the 200-SMA (~$236.95), which confirms a bullish long-term trend.
Current Structure:
Price recently encountered a resistance zone near $378.85.
A consolidation zone is forming around $340–$354, highlighted by the Darkpool Activity Zone.
✅ Bullish Note: Price holding above the Darkpool Zone indicates potential for continuation higher.
2. Resistance and Support Levels
Resistance:
Immediate Resistance: $378.85 – where price recently rejected.
Breakout Target: If $378.85 is breached, the next psychological target would be $400.00.
Support:
Darkpool Zone: $340–$354 acts as key support (highlighted in blue).
SMA 200 Support: At $236.95, the 200-SMA provides strong long-term support.
✅ Key Observation: If price holds within or above the Darkpool Zone, buyers remain in control.
3. Darkpool Insights
The Darkpool Premium of $54,582,34.0 at ~$354 reflects strong institutional activity.
This level has held as support, and institutions may be accumulating here.
4. Momentum and Volume
Volume:
Recent candles show balanced volume as price consolidates near support.
A breakout above $378.85 with increasing volume would confirm bullish strength.
Squeeze Momentum (Bottom Panel):
Bullish Momentum: Blue histogram bars suggest upward pressure remains intact.
Momentum is cooling slightly, so the price may consolidate before its next move.
5. Fundamental Details (as per Chart)
Revenue Growth: 43.74% 🚀
Strong revenue growth indicates Duolingo's robust business expansion.
Free Cash Flow Margin: 26.35% 💵
High cash flow margins reflect the company’s ability to efficiently generate free cash, which supports operations and reinvestments.
X-Value: 41.1 📊
A combination of growth and margin metrics, highlighting Duolingo’s strong fundamental positioning relative to peers.
✅ Fundamentally Strong: Revenue growth and healthy cash flow margins support the bullish outlook.
6. Summary of Analysis
Bullish Signals:
Uptrend Intact: Price remains above the 200-SMA and consolidates near highs.
Darkpool Support: Institutions showing interest in the $340–$354 range.
Strong Fundamentals: 43.74% revenue growth and 26.35% cash flow margin validate the bullish structure.
Key Risks:
Resistance at $378.85: A rejection here could lead to a pullback toward the Darkpool Zone (~$354).
Momentum Cooling: Squeeze histogram suggests consolidation, so patience is required.
Trade Plan
Breakout Entry:
Buy above $378.85 with a target of $400.00 or higher.
Confirm breakout with volume.
Pullback Entry:
Buy near the Darkpool Zone ($340–$354) if price retests this level and holds as support.
Stop-loss: Below $340.
Stop-Loss:
Conservative: $340.
Aggressive: Below the 200-SMA (~$236.95).
Disclaimer
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