$TDOC multiple signals buy (4/5)

Conviction: 4/5

Main thesis

• Retrace to .786 fib level from 2016 lows. This is an unconventional level but it coincided with medium-term resistance from 2009-2020.
  
• RSI-W touched historical bounce area (however, if we wait for bullish divergence there could be another leg down)
  
• RSI-D showing bullish divergence
  
• Touching lower bound of channel (2016)
  

Misc Info

• P/S level of 7ish is high on absolute level, but on lower end of range relative to other high growth names
  
• Healthcare (XLV) looks good compared to SPY, could carry this up as well
  
• High margin and high growth
  
• Very healthy quick ratio
  

Potential Risks

• Bullish div = another leg down
  
• Very negative FCF (not sure why?)
  
• Channel does not include last major recession (2008)
  
• General markets are very expensive, and we all know correlation goes to 1 in selloff.
  
• High growth / expensive names seems like will sell off more than general market