FLT:ASX The current situationA friend owns FLT . He was looking for some information as to whether he should hold (without disclosing his entry price), so here's my explanation.
Note : It makes it a lot easier to 'tell someone whether they should hold or sell' if I know the entry price. Why? Because trading profitably is about consistently cutting your losses quickly, and holding on to (or even doubling down during a pull back buy opportunity) your winners. If you do just that right, you can win with a very low ratio (E.g. Picking only 40% calls, correctly etc.)
The case for:
FLT's price is currently above it's 55 EMA (my favourite EMA to use - see orange line), and we're talking MONTHLY EMA.
It's also just breaking out, and holding (so far) above the downwards trend line.
Furthermore, during this blood bath going on (for many many stocks, ASX or not), it's holding above it's upward diagonal trend line.
If you look at the 55 Monthly EMA, and both trend lines mentioned above, you'll notice that as long as the price holds above ~$17.60 approximately, it's still a HOLD (if in already).
Would I be actively buying here? Depends. If there's nothing else to buy, maybe take a small pilot position here, however given the VIX is peaking and the entire market is a bit crazy, it's hard to tell.
Fibonacci levels* = DEF do not hold under $16.00. High risk of strong support there that, if breached? GNITE
Some questions (and risks) to fundamentally consider:
Could there be further international lockdowns? This would be bad (unless FLT focuses on local and domestic travel, which may be allowed)
Petrol prices' effects on flights and operating costs? If Ukraine/ Russia war continues, as well as other issues, and petrol keeps going up = this could be bad
Recession risk? If people are losing jobs (Carvana for example, even though the car market is ridiculous = can't get stock. So what do they do? Lay off people and buy online auction platform.**) they're less likely to take holidays for obvious reasons.
*Fibonacci levels drawn, using 'all time high' price and 'all time low' price (this is how I draw my fibonacci levels - they stay objective this way, and are applicable whether you're looking at a normal chart or log chart - so that's good!)
**This is why I refused to sell EVAuctions and other car domain names I own btw (for anyone who knows me and is reading this LOL). I saw this coming.
Thanks for reading!
[ Tendie.com coming soon ]
