Bandwidth (BAND) - Watching the gapsThere's a saying that "gaps act as magnets" and that saying has always stuck with me. It's one reason why I always look for gaps on the chart to watch.
Bandwidth, ticker symbol BAND, is a company that provides cloud-based communications services for enterprises. I have written about them a few times and you have probably seen my charts, some GREAT and some bad. Tis is the trader life.
Nevertheless, as a trader who relies heavily on chart analysis, I've been closely monitoring BAND's stock movement, paying particular attention to two significant gaps that have emerged on the chart.
The first notable gap occurred following a mega earnings beat by Bandwidth, catapulting the stock price to recent heights. This earnings surprise not only exceeded market expectations but also signaled the company's strong performance and potential for future growth. For me, this gap serves as a landmark, a testament to Bandwidth's ability to deliver results that resonate positively with investors.
On the flip side, there's another crucial gap that formed during the most recent bear market. This downturn-induced gap reflects a period of heightened uncertainty and fear in the market, leading to a sharp drop in BAND's stock price. However, as a gap aficionado, I view this as an opportunity rather than a setback. These gaps often act as magnets, drawing the price back towards them as sentiment shifts and narratives evolve. For me, this bear market gap represents a potential entry point, a chance to capitalize on the market's overreaction and position myself for future gains as the narrative around Bandwidth shifts once again.
