DADA - Up it goes 45.8 first, 58.8 nextThis is a follow up to my previous post you can check out below.
Bullish view is intact as this one (any many other Chinese stocks) have held perfectly during current market correction.
As long as invalidation holds, I see no reason to not have a position here and in Chinese stocks in general (other good one for exemple is ZI)
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DADA trade ideas
Dada have several bullish setups suggesting more gainsNASDAQ:DADA is a good stock for long term investment and is looking very bullish. Targets indicated on the chart, I would place my stop at 29$.
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This is only my own view and not a financial advice, do your own analysis before buying or selling
Happy Trading!
Stay away for at least 2 years from newly listed IPO stocksRead news here , here and here
Even though this is back by strong players like Walmart and JD.com, from a technical perspective, it lacks historical price action patterns to "fortell" the next market direction, so to speak.
It is better (imo) to wait for 1-2 years for it to stabilise, analyse a bit about the company's performance, match it to see if it fulfils what it says it would do (judge the actions not the words said) and then make a decision.
Yes, by then, the price may have moved quite a lot but at least you are more certain of buying into a fundamentally strong stock.
I know of many friends and retail traders who loved to gamble on IPO shares, believing in the story that if they capture a few of these stocks and if it jump 50-80% within the next few days of listing, they are going to make a killing.
That is a strong IF. Of course, if you are skilful, have the experience in trading IPO shares, understand the risk and rewards involved, then it is fine. Else, if the shares do not perform as you wanted it to be, then you are stuck with it . That means, your capital is tied up until the share price recovers back to the IPO price. As evidenced in many IPO stocks, this may take months to years . And that to an investor is opportunity costs.
Are you prepared for it ? If yes, carry on. If not, hold your fire and not let temptation or hearsay about people making tons of money from IPO stocks. For every winner announced, there are many dead ones not declared, probably too embarrassed to share their story.
My take :
It is still burning cash, operating at loss and the IPO price is too high for a start. Strong competitors in this food delivery service includes Meituan and late entrant, DIDI.
Now that China has lifted its lockdown status for Covid-19, would the majority of the buyers still go online to buy groceries ? Will this habit be sticky throughout for DADA to thrive on ?
With social distancing measures lifted off and plenty of large scale hypermarkets, supermarkets, food stalls along roadside to cater to daily groceries, would the online buying trend for food groceries remain strong ?
I would need more time to do research and thus would not be looking at this counter for a while....
DADA - Forming Technical Pattern / Strong Fundamentals Top performer within industry group giving it a strong relative strength above 90.
Positive EPS growth (12%) and strong sales growth (88%) since past quarter.
Healthy volume contraction. Wait for downward trendline to break with solid volume.
Buy area: $35.40-$35.50 (above highs of October 29th) NASDAQ:DADA
Slow and SteadyIs New But Backed By JD and Walmart. From the chart, it Looks like another Bullish Chinese Stocks. Need more time to analyse but meantime no harm enter at this level. Since Most of things moving to Digital and because of Covid and closure of market. DADA potential. No financial analysis for such a new company.