ROOT Update - Puts closedAnother one of those good story shitty results company.
See previous post why I went short
No reason for this to bounce. Rode a few waves, puts closed (a few weeks ago), out and never coming back to it again.
ROOT trade ideas
$ROOTRetail investing subreddit r/WallStreetBets has spun the short-squeeze-stock wheel this morning and it appears the arrow is landing on ROOT.
The company is exploding on the subreddit in terms of comments, and the stock is moving in massive quantities. Some are making their exit as ROOT stock sees a boom and bust this morning, whereas others are buying in and predicting a squeeze that will boost their long positions.
If you don’t know already ROOT is a car insurance company with an innovative model. It insures only good drivers.
Users must download a location-tracking app to leave on when they drive during a test period.
Users deemed by the app to be a good driver are offered a competitive insurance premium through the company.
The result is that the company only insures drivers who are typically much safer. This allows ROOT to offer lower premiums than other insurers who must account for more dangerous clients.
ROOT stock is one of the more heavily shorted by Wall Street institutions; about 19.5% of ROOT’s float is being sold short. The r/WallStreetBets crowd has been recently pouring into the stock as a result.
When we look at the technical side of things ROOT seems to be sitting in a huge falling wedge on the daily chart since going public.
This could give a good opportunity if we break above resistance.
I suggest keep things on your watchlist as we come towards the end of the falling wedge.
Watchlist activated!
- Factor Four
Why did this happen to ROOT???It is easy to talk about it when it is ranked 2nd mentioned ticker on WSB, but it is not easy to talk about it 18 days before it happens..!
You must study WSB strategies very well to discover these hidden patterns!
ROOT is one of the most shorted assets in the market: short interest: 21.96%, and recently this is increased 205 from 15.8M shares to 19.08M shares!
Now it is time to cover for short-sellers, and because of low trading volume, they need to fight each other in the long position to cut their loss, which causes crazy price movement..!
Check my analysis on August 12, 2021, when ROOT was 5.51:
Be careful this type of price movement will not last long..!
$ROOT Root Inc Mondays Movers List
Thankfully we are positioned in the stock since Friday morning so looking forward to continuation on Monday.
Hopefully you find the chart helpful in terms of Supports & Resistance etc.
we refrain from adding commentary on the chart as that is reserved for our members and we are very conscious of not giving financial or trading advice.
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$ROOT Long term PT 25 and higherRoot, Inc. provides insurance products and services in the United States. The company offers auto, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners. The company was incorporated in 2015 and is headquartered in Columbus, Ohio.
ROOT - Daily - Bounce Play?The weekly RSI has been contradicting price trend 2-3 times...
now has reached all time low with huge volume.
FANS Unite clear channelFANS is back at the same Fib support area as it was a few weeks ago. Tested the upper resistance before failing to break above it. Now volume is coming into question. I think it's not so much company as it is industry sentiment flip flopping. I think new companies are coming out with more dynamic platforms adding plenty more competition to the industry
" Other companies like FansUnite Entertainment Inc. (CSE: FANS)(OTC: FUNFF) focusing on wagering. The company signed an agreement with Money Line Sports to make Money Line an approved white label partner and operator of the FAN’s licensed wagering platform. “The new digital betting portal will showcase FansUnite’s advanced gaming applications that will be equipped with Money Line’s top-tier streaming media solutions and robust sports content, resulting in a synergy that can capitalize on the betting interests of football fans and bettors,” said Scott Burton, CEO of FansUnite. "
Quote Source: Best Penny Stocks To Watch Now? 10 Top Epicenter Stocks For Your List
Root Long Idea - Second ChanceGot stopped out on the last attempt. Placing my long orders here for a second try.
$ROOT PT 22-23 and higherRoot, Inc. provides insurance products and services in the United States. The company offers auto, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners. The company was incorporated in 2015 and is headquartered in Columbus, Ohio.
Root InsuranceRoot - another runner I was all over and as time passes and more info shows up - seems like its set up to fail. Did anyone drive during the pandemic? - No! Most insurance rates went down....less driving = less accidents = more profit for insurance companies. Root on the other hand managed to spike their rates 20-30%. Guaranteed to loose customer.
Current price action is nothing but a short squeeze. It run higher to the upper boundary of the falling wedge formation but eventually this thing is going to $6 IMO.
Long $ROOT with catalyst. $21 price targetCatalyst: Kevin Fomo entered the rocket ship, meaning it can now to go the moon.
Root Inc Long Setup - Short Squeeze Is PossibleRoot inc looks to be holding support at the moment. Short interest at a staggering 52% could lead to a nice short squeeze.
ROOT - IPO LOCKUP 4/26 40% SHORT INTJust going to buy a few shares and some lotto calls on this to see if they can squeeze this back to IPO price levels
ROOT AnalysisDaily Chart. Ascending Channel forming to test that resistance. Let's see if this is the reversal.
ROOT - LONGI think, due to the high short interest and the weakness in the decline lately that the next month is going to be suprisingly good for the upside.
Let's see.
ROOT of the ProblemRoot looks to be building an ascending triangle. Price needs to hold purple line for breakout potential to stay engaged. Watching this one closely, playing it from the long side for now, with stop loss between $9 & $10, upside to $20, blowout to $60.
Likely to hit new lows. Root rejected at old support (14) now turned into resistance. Near term support trendline also broken, and likely to find support on the bottom of the long term (yellow line) falling
trendline. Price target: $10.
Will watch this area for potential reversal. A DB may be in play if 10 level holds.
Fundamentally, nothing to provide a counter to lower lows. Stock remains priced above valuation, particularly in car insurance sector.
Entering another bullish channel?Not financial advice.
Looking at the ha candles, volume, and SMMA 10, ROOT may break out as soon as Monday, April 5th with an upward trend looking to push $20 per share by the end of April. Looking at the break out from mid-December, the trend pushed approximately 20% per week until early February.
This time around, an increasing short interest, Citron's bullish sentiment, and an already low float could send ROOT even higher.
Let me know what you think.
Thanks
Cup and handle setup, return to highs?This company IPO'd at 27. It is an auto insurance company with some innovative ways of assessing premiums.
Cup and handle. Could return to 19s relatively soon on technicals.
Grabbed shares earlier today in 12s. 1000 shares to start with, and a few calls. Let's see where it goes.
ROOT potential reversal sign.ROOT forming a rounding bottom. Could be a good sign that a reversal is incoming. Also volume has been increasing. Could also turn into a cup and handle if we get a small pullback.
