Head & shoulders potential & monthly consolidation
Anyone that has followed knows how overextended this chart is. The monthly has gone parabolic for over 12 months now with each monthly candles low being higher than the previous one.
Monthly chart
-Up over 700% with no monthly consolidation
-Printed a monthly reversal candle with a very large upper wick.
-RSI indicator is over 98 still (RSI cannot go to 100 the way it is designed)
Compare this stock to monthly charts of arguably two of the most successful companies in their space and even they have never gone this parabolic for this long without monthly consolidation. AMZN during the dot com bubble or SHOP at its most extended. Both had a few months selling (consolidation) to digest the move and neither stayed this hot on the RSI for as long without pulling back.
*Fundamentally no near term upcoming catalysts for SE either.
*Weekly chart still has bearish divergence.
Now the daily chart. Today we saw big selling volume on their poor earnings release. Missing both EPS estimates and Sales estimates. They are also trading at a very high valuation (more than double) when compared to any of their peers. We have a head and shoulders now developed and significant overhead resistance confirmed with todays large selling volume. Looking for the head and shoulders pattern to confirm to allow for the weekly bearish divergence to play out giving this chart the monthly consolidation that is needed to digest this massive move.
First target is ~$190 and second is ~$160 over these next few months.
Monthly chart
-Up over 700% with no monthly consolidation
-Printed a monthly reversal candle with a very large upper wick.
-RSI indicator is over 98 still (RSI cannot go to 100 the way it is designed)
Compare this stock to monthly charts of arguably two of the most successful companies in their space and even they have never gone this parabolic for this long without monthly consolidation. AMZN during the dot com bubble or SHOP at its most extended. Both had a few months selling (consolidation) to digest the move and neither stayed this hot on the RSI for as long without pulling back.
*Fundamentally no near term upcoming catalysts for SE either.
*Weekly chart still has bearish divergence.
Now the daily chart. Today we saw big selling volume on their poor earnings release. Missing both EPS estimates and Sales estimates. They are also trading at a very high valuation (more than double) when compared to any of their peers. We have a head and shoulders now developed and significant overhead resistance confirmed with todays large selling volume. Looking for the head and shoulders pattern to confirm to allow for the weekly bearish divergence to play out giving this chart the monthly consolidation that is needed to digest this massive move.
First target is ~$190 and second is ~$160 over these next few months.
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