SPOT into Earnings

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On the daily chart, SPOT has been running on what is called a long island rally, or just a long island bottom pattern, where it leaves frequent gaps and travels straight up with further gaps along the way.



Long islands are bullish patterns; however, the average rise of a long island pattern is between 37 and 40%, whereas SPOT has rallied over 300% on its long island pattern.
Theoretically its overdue for a breakdown. TSLA recently broke down form the same formation, a long island rally:



TSLA gained 125% on its long island rally.

However, with that said, the premise of this idea comes mostly from an earnings release that is forecasted to be quite bearish, with a decline to 450 over the next 2 months part of the larger forecast.

Here is a modelled snippet of the forecast for SPOT over the next 25 days:




My opinion and position currently is short into earnings.

Not advice!

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Đã hủy lệnh

The gap down hit my initial TP and decided against taking this after that.