DUOL current statusSector is trending up
1. the stock is making higher highs/lows
2. 200 MA is moving up
3. area of value is support around 200 MA
4. lower timeframe opposing trend is broken
5. now we wait for a nice pullback on a lower timeframe
6. then we'll wait for a price rejection stronger than ATR about 1.5 times
7. we'll check there is no opposing 10 or 20 MA ahead
8. then we enter risking 0.5% of your capital to the stop
9. set stop below the lows on the main timeframe
DUOL trade ideas
DUOL- AI Translation Services for global apps LONGDUOL popped from a 5X earnings beat. I got into this trade last week with a little bump in
relative volume and volatility off-screeners on tech upcoming earnings. The high-tight flag
pattern typically forecasts a leg of a bullish continuation higher after some consolidation.
Options for March 15 went 2.5X overnight. Half the position off the table taking profits.
the other half awaiting the continuation. The risk here is those taking profit or short selling
outnumbering new buyers chasing and causing a fade. Nonetheless, I see the potential for
further profit and will assume the risk.
profit
Duolingo Stock Soars As Online Learning Surge and AI Boost Duolingo (NASDAQ: NASDAQ:DUOL ) has witnessed a remarkable surge in its stock price, soaring over 19.79% as the company projects robust revenue growth fueled by the booming online learning trend and strategic integration of artificial intelligence (AI) on its platform. The language learning giant's forecast for 2024 revenue surpasses analyst expectations, underscoring its dominant position in the evolving online education landscape.
As the language learning market undergoes a paradigm shift towards online platforms, Duolingo ( NASDAQ:DUOL ) has emerged as a frontrunner, capitalizing on its "freemium" model to capture a significant market share. With the introduction of Duolingo Max, a subscription tier featuring advanced AI features, the company has tapped into growing demand for personalized learning experiences, driving higher engagement and user satisfaction.
"We saw a lot of demand at higher prices for our Max offering," noted CFO Matt Skaruppa, highlighting the success of Duolingo's AI-driven initiatives in enhancing the platform's value proposition and monetization capabilities.
The company's stellar financial performance reflects its ability to leverage AI technology effectively, with record total bookings of $191 million in the fourth quarter and a substantial increase in paid subscribers, reaching a record 6.6 million. Moreover, Duolingo's robust user growth metrics, including a 65% increase in daily active users and a 46% year-on-year growth in monthly active users, underscore its widespread appeal and growing user base.
Analysts at Seaport Global emphasize Duolingo's leadership position in the language learning market, attributing its success to the strategic integration of AI technology and the execution of its "freemium" business model. With the online learning trend gaining momentum, Duolingo ( NASDAQ:DUOL ) stands poised to capitalize on emerging opportunities and drive sustained growth in the years ahead.
Despite the impressive surge in Duolingo's stock price, trading above $227, there remains room for further upside potential, with analysts highlighting the company's strong fundamentals and positive market sentiment. While trading at a discount to analysts' median price target of $251.50, Duolingo's transformative growth trajectory and strategic vision position it as a compelling investment opportunity in the dynamic ed-tech sector.
In conclusion, Duolingo's ( NASDAQ:DUOL ) ascent to new heights underscores its resilience, innovation, and strategic foresight in navigating the evolving landscape of online education. With AI integration at the forefront of its growth strategy, the company is poised to redefine the future of language learning and solidify its position as a global leader in the digital education space.
DUOL - correction over?I started looking at NASDAQ:DUOL after it popped up in a question on a call with Calebs Cube Analytics premium group, and then again when it showed up in one of the Zacks reports.
It looks like its recently completed a 5 wave pattern and an ABC correction. We have a slight breakout from the descending trendline that is testing the 21VWMA:50EMA cloud. I'd like to see price retest the breakout and confirm support, then look to overhead fib levels for profit taking. A close below 175 invalidates.
The advantage to looking for these types of opportunities is that we can use really tight stops. Using stops between 174-181, and profit taking targets at 200, 214, 224, and 240 gives us a 2.5:1 to 3:1 risk reward.
DUOL: In the mid-term resistance zoneWhile I like DUOL from fundamentals and momentum leadership perspective, my interpretation of the price structure calls to be very careful to any potential sell- or trend-changing signs.
227-264 area is the zone of important resistance for the first leg of an uptrend trend, starting from May'22 lows.
Until price is closing bellow 264 level, I cannot disregard the these perspective of mid-term pullback to 140-100 area, that may present exceptional opportunities to get onboard for the potential triple digits run in several years.
If price move beyond 264 resistance level, suggested price structure needs to be revised.
Signs of potential trend reversal would be:
1. Break bellow 8/21 ema on volume and distribution signs;
2. Break bellow 2021 top (205)*;
3. Break bellow 50d and 10w MAs on volume increase.
I remain very bullish and optimistic long-term for this name.
* that could trigger double-top short set-up with 205 as a covering guide
Running GagLess than 1 week ago we exceeded the the current trading range in which we stuck since mid November. The first rise has been corrected on Friday and yesterday the uptrend has been confirmed. As long as the momentum is lasting we shall see higher highs. The overall market rise is supporting strong trends.
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DUOL Long - High volume push out of IPO BaseDuolingo has pushed out of its IPO base after a gap up on earnings. The +21% gap up saw the largest volume ever traded (excluding lock up volume) and closed at the highs.
The moving averages prior to the gap were compressed, but have since expanded from the run up in price. My plan is to go long DUOL on any pull back into the support zone at $220, or long through Fridays high ($215.53)
Duolingo (NASDAQ: DUOL) Paid Subscribers Rise 60%Duolingo (DUOL) shares jumped around 10% this week trading after the company reported quarterly earnings and guidance above consensus expectations.
The company reported Q3 EPS of $0.06, $0.14 better than the analysts' estimate of ($0.08), while revenue for the quarter came in at $153.6 million, up 43% YoY and well above the consensus estimate of $132.15 million.
Total bookings in the quarter were $153.6 million, rising 49% from the prior-year quarter, while subscription bookings were $121.3 million, an increase of 54%.
Furthermore, paid subscribers totaled 5.8 million at quarter end, a 60% increase YoY, with monthly active users (MAUs) at 83.1 million, representing a 47% jump from last year. Daily active users (DAUs) came in at 24.2 million.
Technical Analysis
The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend1. The stock also has a Relative Strength Index (RSI) of 59, which is neither overbought nor oversold.
The stock may face some resistance at the $165 level, which was the previous high on September 29, 20211. If the stock can break above this level, it may test the $180 level, which was the all-time high on August 9, 2021. On the other side, the stock may find support at the $150 level, which was the low on October 20, 2021
DUOL has two choices
3 tops or a Rule of 3
Has problem with braking $164 level which is a sign of weakness.
Look for more weakness. Confirmation when it will open under 8EMA and starts to brake down under 21EMA
RSI high
SMI high
MACD bars down/MA slowly curling down.
Ideal Price Target in OPT zone.
Do not see any news around it. Lack of catalyst.
$DUOL OutlookIt appears that DUOL is falling quickly which is not a sign you want to see at the beginning of weakness in the larger market. There seems to be support near $110 but falling through that would lead to significant losses. I'd take profits or reduce exposure until a clearer market direction is painted.
DUOL Entry, Volume, Target, StopWhen price clears: 146.40
With daily volume greater than average.
Target: 176.00 area
Depending on your risk tolerance: 136.53 gets you 3/1 Risk/Reward.
This trade idea is not trade advice. This swing trade idea is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
The language learning app Duolingo continues to outperform As tech related stocks break out higher, DUOL is another one not followed by many that needs to be watched.
While the company is yet to put in a profitable year, its revenue has grown from 71mn in 2019 to 369mn in 2022. GP margins remain very strong but NI is yet to turn positive.
Its total cash position has grown from 60mn in 2018 to 608mn in 2022, giving the company ample cash for expansion.
Current ratio is around 3.64 as of Dec 2022.
Very limited long term debt.
Cash per share is $15.63
Technically, the stock remains in a well established stage 2 uptrend where good pull backs on low volume could be considered as buying opportunities.
With the company expected to grow its revenue by another 37% this year and its losses to shrink further and put the company closer towards profitability, DOUL continues to be a solid growth stock.
DUOL - buy the dipsDUOL broke out of a base formation neckline @ 114 strongly on 2nd March this year and then did a classic retest of the neckline on 13 March, affirming that the neckline @ 114 has now become support. It then went on to hit a high of 147 before retracing all the way back down 116.82 (triggering a trailing stop loss @ 130).
A bullish morning star pattern than formed on 5th May and a re-entry was triggered on 6th May. However with earnings reporting on 9th May, one has to decide whether it was worthwhile to take the risk to long here. With the stock already dipping 20% from it's high of 147, the odds of an earnings surprise to the upside could be higher. Nevertheless, risking no more than just a small position (before earnings) seemed prudent.
Now that earnings is out of the way (upside surprise), there is a chance it could break it's last recent high of 147 in the near term. On the bigger picture, the stock is now on an uptrend and there is room to rise in the coming months. However market could continue to be volatile hence it could be less risky to buy any near term dips rather than to chase breakouts.
Learning to manage a position in such volatile conditions is paramount. I would still place trailing stops and am prepared to get stopped out but re-enter at the next bullish trigger, but only if the chart still looks bullish on the bigger picture.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
Duolingo On Fire: Can It Keep Going Amidst Economic Uncertainty?Duolingo Inc (DUOL), an American edtech company, offers over 100 language courses, including popular and less commonly studied languages. The platform uses gamified lessons with translating, interactive exercises, quizzes, and stories to make learning more engaging. Its unique algorithm adapts to each learner's level and learning style for personalized feedback and recommendations. Duolingo also offers a language certification program, a literacy app for children, and a math app for iOS. The platform also offers podcasts with simplified grammar, vocabulary, and slower intonation for intermediate level learners. NASDAQ:DUOL is listed on NASDAQ.
Wyckoff Change Of Character Leading Into Accumulation Phase And Breakout
DUOL has been in downtrend after hitting an all-time high of $205 on 22 Sep 2021. The Wyckoff distribution persisted until a Wyckoff selling climax (SC) on 15 March 2022 where it hit $64.80. The subsequent reaction was a relatively impulsive automatic rally to reach $101.50. This had the characteristics of Wyckoff change of character (CHoH) as the price structure shifted from downtrend to a trading range.
For the next few months, the price tested the highs and lows of the range. Several Wyckoff upthrust (UT) was formed but unable to commit above the resistance of $101.50. Yet the duration DUOL spent in the upper trading range $90-$110 showed evidence of strength.
The price did one last leg down to test the low in late October to December of 2022 with low volume suggested exhaustion of supply. At the beginning of 2023, DUOL price had a localized Wyckoff spring then started a significant Wyckoff sign of strength (SOS) rally. It was the best rally and the pull back from resistance was shallow, forming the Wyckoff last point of support (LPS). This is the sign before a successful breakout of the Wyckoff accumulation phase. With earning results as catalyst, the price gap up above the $101.50 resistance and committed above it. This was accompanied by increased volume hinting at the presence of demand. The up trend took a momentary Wyckoff back up (BU) pullback forming a higher low at $114 before continuing on the phase E uptrend.
Bias
Bullish. According to the Wyckoff method, DUOL has just broken out of the BU range of $130.50 and is overextended short-term. The price might retest this level and before challenging the next immediate resistance at $154 and $165.
If the price breaks below $130.50, it will likely retest the support at $114 with a prolonged consolidation.