Long

Wish Breakout

Updated

It looks like we saw a false downward breakout of the descending wedge this stock has been following since it was at $15 per share. Now we have an upward breakout of this same wedge, and saw a nice rally off major support at the $4.89 line. Wish immediately dropped 30%+ following the release of Q2 earnings, but more importantly has fallen over 42% since that drop which to me suggests that an abysmal Q3 earnings report is both anticipated and priced in. Anything less than a complete train wreck, or forward guidance with any hint of positivity for Q3 and beyond should be met with a decent size rally. If somehow earnings are a full beat this stock has a chance to skyrocket. My initial target is around $7.80 post earnings, with an eventual gap fill at $9.40. If earnings is a complete route (which I see as a low probability, I think revenue will beat but everything else will miss) then all bets are off.

I've posted this in my other updates, but here's a recap of my bull thesis: 1. Buyout candidate for several major players or hostile takeover at this valuation with 1.4b in cash; 2. Major gap to fill at 9.40ish 3. Oversold, beat up beyond anything logical (trades at 1x sales), and reversal seems to be taking place; 4. Prior Zach Morris pump candidate.

GL!

Note

Breakout confirmed, up 11.5% as of now. Congrats to anyone else who was in on this trade. I'm going to continue holding as old resistance has now become support, and I think fomo will set in.

stonkasaurusrex

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.