$CRSR TA – Fantastic Setup 7 Months In The Making
TL;DR – Falling Wedge on the daily chart
Breaks out above 35.03 – using that as support going forward
Price target: 70
Resistances above the breakout: 40.92 –> 44.89 –> 48.28 –> 50.00 –> 52.50 –> 55.00 –> 60.00 –> 65.00
Plays out over the course of 1-3 months so look for each of those resistances to become support
Been watching this stock since it IPO’d – and this setup itself for a few months. Saw it was trending recently – so I figured I’d share what I’ve been seeing:
Since just after that post-IPO peak – we’ve just been consolidating downwards – building out an incredible falling wedge. The company is solid fundamentally – so I don’t see a reason why a setup like this wouldn’t break to the upside. When fundamentals and technicals collide – you usually get some amazing trades.
Currently we are stuck between this 35.03 – 29.47 range. If you are one of the ones who frontran – look at 29.47 for support. If that breaks down, it’s likely we retest 26.64. This wouldn’t be a bad thing at all – we want to build out volume in every price range so that we don’t have to revisit them in the future – just watch out of if you are in short dated options.
That being said – this thing hasn’t done much in a while – I wouldn’t frontrun here. The entry for this setup is on a daily close above 35.03. From there, full speed ahead to those price targets.
I posted some conservative estimates above – with resistances to trail your stop losses to – but a setup of this magnitude could honestly go as far as 70.00.
Really looking forward to this one. With retail finally paying attention – maybe we actually see a move next week. The wedge is getting really tight. We either have to break out, or drop into the lower range by next month.
Not Financial Advice
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June 11, 2021 at 03:19PM