Long on ALRM, Bought at 88.79, stop at $85. Target is 95. It looks like a solid trade from the bottom of the wedge up. It appears to be consolidating as a bull flag. it may fail as the market is correcting. We will see.
Fundaments: EPS this past year: Up 147%, EPS Q/Q: Up 100.7%, Sales Q/Q: Up 24.2%, Gross margin: Up 62.8% Forward P/E Down to 60.03 (still high but lower). "Technicals": Buy the dip. Price: 16.13% above SMA 50, Price: 53.68 above SMA 200. When to buy: Early buy (might be risky): Wait for price to close above the SMA 3. Confirmation to buy: SMA 3 crosses above SMA...
Stock is ready for pattern bounce, $45 strike for late December just to be safe.
ALRM - Head & Shoulders formation with a bullish entry day closed with high volume - trend reversal