Breakout Trade in HIMSHIMS is another high growth name. Sales have nearly doubled in each of the last four quarters and losses are steadily declining.
HIMS stock got overcooked after rising 195% between October and May, triggering a 30% retracement.
This stock also has an “undercut & rally” setup forming. Note the dashed line on the chart above. This was a significant area of resistance previously, so the move below this level last month likely took out a lot of investors.
Shares have consolidated in a tight range on low volume for the last two weeks. This is likely support buying as longer-term investors build or add to their positions.
I want to see a move above the support/resistance line at 9.50. A move above that price would be my buy trigger. My stop loss would be at 8.70 to risk 8% on the trade.
