Good entry point on FUBO; finding support on the 21EMA

Updated

FUBO retraced about 42.35% from the previous swing high and is now finding support on the 21-ema. It touched the 21-ema yesterday and again today. It is now sitting on the .5 fib retracement and finding resistance on the 14-ema. Additionally, the stochastic RSI is starting to curl up, which is a sign of change in momentum.

This doesn't mean it couldn't go lower (I personally don't think it will) but this level is a good first entry point. I entered yesterday and today with an average buy price of $37.72. If it retraces further down I am looking to add to my position around the .618 fib level and the 50-ema.

***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***

Note

FUBO retraced another 4-5% and is currently finding support on the 50-ema on the 4hr chart. I added a few more shares at this level and will continue to do so on other support levels if it keeps retracing. If there is more downside, next stops are $29 (.618 fib level), $27.6 (50-ema on the daily at the time of this writing), and finally $26, which is the strong support level where the upside rally started.

Note

Looking at the weekly chart it is possible to see a shooting start candlestick whose bearishness is being confirmed by the current red candle. Other bearish signs are the RSI on overbought zone for the first time and MACD starting to curl down. On the positive side if you own the stock, the price is now hugging the long term trendline, which will hopefully hold.

Another bearish sign is the bearish harami candle if you use Heikin Ashi candles:

I am looking into perhaps changing my strategy if the weekly candle closes below the long trendline.

Note

FUBO gapped down on today's opening. It is below the long term trendline at the moment and struggling to go back up. Seems like it found some support close to the 50-ema but RSI is below 50 and the MACD MA crossed sharply below the signal line. This bearish scenario can change but it doesn't look very good at the moment. Price is down roughly 55% from previous swing high.

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Time of the truth for FUBO. If it can hold the $26 support it should be able to start a recover rally, otherwise this would indeed be confirmed as a V-top pattern and more downside would come
Daily:

Weekly (looks baaad):

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BTW, I closed my position for a loss at around $29.8 after FUBO opened below the trendline. It was a small loss since my position was not too large. Reassessing now to find a better entry point.

Note

The $26 level support didn't hold and FUBO is now moving lower. The move seems to be fueled by short sellers: "Today's loss stems from a short-seller report by Kerrisdale Capital -- the second such short report on fuboTV in a week. Kerrisdale believes the stock is worth $10 per share, which isn't far from the $8 target set by LightShed Partners last week." (fool.com/investing/2021/01/04/why-shares-of-quantumscape-shot-higher-in-december/)

Currently FUBO is sitting on support at around $23.5. Next level down is around $21 and then there is no clear support level until $13. Doesn't mean it will continue going down, but it doesn't look very good. I would not enter a position until there is strong confirmation of reversal, which is not on the chart at the moment (except for maybe (stress on maybe) a few relief rallies I honestly don't see any upside any time soon. It doesn't mean it couldn't happen but momentum is very bearish). If you bought the top your best strategy is to dollar cost average your way down and hold it for the long term. But always look for good entry points. It is very possible that FUBO will go much lower since there are very low price targets issued by two investing agencies.

Note

Re-entered FUBO at $28.3 with a tight stop loss below the 50-ema.

Note

Based on the fib extension my next target is $32, at which point I may sell my shares for a quick profit depending on how strong the trend is if we get there:

Trade closed manually

Closed for a break even. Waiting for more direction on this one. Too choppy at the moment.

Safe_Trades

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