$TDOC multiple signals buy (4/5)Conviction: 4/5
Main thesis
Retrace to .786 fib level from 2016 lows. This is an unconventional level but it coincided with medium-term resistance from 2009-2020.
RSI-W touched historical bounce area (however, if we wait for bullish divergence there could be another leg down)
RSI-D showing bullish divergence
Touching lower bound of channel (2016)
Misc Info
P/S level of 7ish is high on absolute level, but on lower end of range relative to other high growth names
Healthcare ( AMEX:XLV ) looks good compared to AMEX:SPY , could carry this up as well
High margin and high growth
Very healthy quick ratio
Potential Risks
Bullish div = another leg down
Very negative FCF (not sure why?)
Channel does not include last major recession (2008)
General markets are very expensive, and we all know correlation goes to 1 in selloff.
High growth / expensive names seems like will sell off more than general market