TDOC to $140s by May earnings?
Updated
I'm in TDOC, it has delivered more than I have expected, specially that December to Feb run we enjoyed.
Fundamentals
But, as much as I believe in the long term potential of TDOC, I don't think enough people know where the growth potential in the company comes from. This isn't just a telemedicine covid stock that many people think. This company has a vision that is prepared to make the most out of the slightest of weakness in the nation's healthcare system. If you believe the traditional US healthcare sector is going to become super efficient in the next 5 years, don't invest in TDOC. But my bet is that the only way the US will be able to better manage the healthcare needs of such a vast population is through innovations across disruptive platforms like Teladoc.
Some of TDOC's acquisitions in recent years that expand their offering: livongo, inTouch health, Best Doctors, Advance medical.
Technical analysis
RSI is currently oversold. Broadly the market is recovering, as will Tdoc, but with a weaker earnings report in Feb, the pressure will be on during the May earnings.
If TDOC does a clean break upward of 230$, we're good. But, I believe, similar to the June 2020 - Jan 2021 run, TDOC will run through a flat out consolidation between the $185 - $235 range, shortly after which a Head and Shoulder pattern may be obvious.
Given the broader market risks mid year and May being earnings, I expect the drop to $140 may happen around then. If we continue to consolidate, I will still keep an eye out as I believe TDOC will find a deeper correction (and a better buying opportunity) in 2021.
Good luck traders!
Fundamentals
But, as much as I believe in the long term potential of TDOC, I don't think enough people know where the growth potential in the company comes from. This isn't just a telemedicine covid stock that many people think. This company has a vision that is prepared to make the most out of the slightest of weakness in the nation's healthcare system. If you believe the traditional US healthcare sector is going to become super efficient in the next 5 years, don't invest in TDOC. But my bet is that the only way the US will be able to better manage the healthcare needs of such a vast population is through innovations across disruptive platforms like Teladoc.
Some of TDOC's acquisitions in recent years that expand their offering: livongo, inTouch health, Best Doctors, Advance medical.
Technical analysis
RSI is currently oversold. Broadly the market is recovering, as will Tdoc, but with a weaker earnings report in Feb, the pressure will be on during the May earnings.
If TDOC does a clean break upward of 230$, we're good. But, I believe, similar to the June 2020 - Jan 2021 run, TDOC will run through a flat out consolidation between the $185 - $235 range, shortly after which a Head and Shoulder pattern may be obvious.
Given the broader market risks mid year and May being earnings, I expect the drop to $140 may happen around then. If we continue to consolidate, I will still keep an eye out as I believe TDOC will find a deeper correction (and a better buying opportunity) in 2021.
Good luck traders!
Note
Playing out beautifully so far. Updated on a new chart with personal exit targets in place.
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