This tape of a young stock exhibits the stages as described in the classic book by Stan Weinstein “Secrets for Profiting in Bull and Bear Markets. After the post-IPO drop, the stock entered Stage 1 where it was essentially the base for a terrific Stage 2 growth stage.
Recently, it topped out (Stage 3) and it is likely that it has entered a Stage 4 decline phase as this weekly chart shows the price making a strong move through its 30 week SMA (the Green curve).
A great place to short this stock as it’s corresponding sector (Tech) is showing it’s exhaustion after an incredible run.
No buy-and-hold territory. This could get ugly, no matter how much investing houses have sung the praises of this company.
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