Bottom Incoming
Updated
I made a call about a bounce on October 8th and we did bounce 18% from close on October 8 to high of bounce on October 9th. However, a sell off and roll over has made this stock continue to crash losing 57% in the last 14 trading days.
First, some fundamental analysis. I will link below the background on why this stock has long term potential. Basically a potential 800M market through the electrification of the transportation industry. HYLN has the competitive edge on technology and after the crap going down with NKLA, it leaves not many big players.
Now for the technical aspect. The run up of August and September stems from the acquisition of Tortoise Acquisition. People wanted to ride that hype train and SPACs were the big play. All are hurting. But now lets look back to support. After the pullback in August the low set is $17.84. We also had a lot of trading through that range in July and August having a volume profile spike between $16-$19. This is also the range where I consider long term investors. This is the range where people bought in because they believe in the company. Had they not sold any shares, they aren't going to be selling now down low 23.xx range. Lastly, the 9 and 12 MA on the monthly is $22 - right where support is upcoming:
For these reasons, I would expect the bottom to be in within the next week. I don't expect this to V shape to $50 anytime soon, but sideways action between $20-$28 (the biggest volume profile spike upcoming), before longer term recovery is expected.
First, some fundamental analysis. I will link below the background on why this stock has long term potential. Basically a potential 800M market through the electrification of the transportation industry. HYLN has the competitive edge on technology and after the crap going down with NKLA, it leaves not many big players.
Now for the technical aspect. The run up of August and September stems from the acquisition of Tortoise Acquisition. People wanted to ride that hype train and SPACs were the big play. All are hurting. But now lets look back to support. After the pullback in August the low set is $17.84. We also had a lot of trading through that range in July and August having a volume profile spike between $16-$19. This is also the range where I consider long term investors. This is the range where people bought in because they believe in the company. Had they not sold any shares, they aren't going to be selling now down low 23.xx range. Lastly, the 9 and 12 MA on the monthly is $22 - right where support is upcoming:
For these reasons, I would expect the bottom to be in within the next week. I don't expect this to V shape to $50 anytime soon, but sideways action between $20-$28 (the biggest volume profile spike upcoming), before longer term recovery is expected.
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