ELPI (VCP - 26W 14/4 3T)Position update: March 25, 2025.
Key factors:
1. Confirmed stage 2 uptrend.
2. A textbook double bottom with VCP characteristics.
3. Has gone through its majority line of supply.
4. Moving on its own drummer, the stock consolidates while the index suffers a terrible decline.
5. High relative strength.
6. Volume dries up as less supply coming to the market.
7. Strong fundamentals, with consistent year-over-year earnings growth.
Considerations: Despite these strengths, the broader market remains in a bearish phase, down over 20% from its all-time high. Geopolitical risks, persistent net foreign selling, declining investor confidence, and concerns over the government downplaying the stock market's significance continue to contribute to an unstable market environment.
ELPI trade ideas
ELPI - CUP WITH HANDLEI bought the stock today
August 30, 2024
Reasons:
1. Low-risk entry point
2. Long base cup development
3. Formed a classic cup with a nice drifting handle
4. Newly IPO stock in late 2022
5. High relative strength
6. This is the second buy-able base since the IPO (first: vcp on 8/2/24)
7. More stocks start showing traction.
Flaws:
1. Not really in a confirmed stage 2 uptrend
2. No big volume on the breakout
I like to see if it can holds up and continue moving higher from here