Although on the face of it buying any stock or market is not necessarily a smart thing to do, it would appear that the so-called smart money is currently doing this. The latest rise for the stock comes after a spate of upgrades from brokers, since the beginning of the year.
The peak call has been $100, with the consensus still reasonably above current levels at $76. But interestingly enough, it is Chardan Capital’s $100 target which ties in with the technical target one gets from the daily chart. Here it can be seen how it is possible to draw a rising trend channel from as long ago as July 2017. Using this configuration we have a 2-year resistance line projection heading as high as the aforementioned $100.
Confidence in the trend channel is backed by the way the support line floor is just below the 50 day moving average at $59.17. There have also been two as yet unfilled gaps to the upside in recent days, the first through the 50 day moving average – typically a decent buy signal in its own right. At this stage, the favoured stop loss on the buy argument would be an end of day close back below the second gap at $64.86.