Technical Analysis of Digital Turbine (APPS)Looking at the stock's (APPS) historical performance, we can see a long lateral phase that lasted about 10 years. It broke out of this sideways trend with a strong bullish rally, reaching a peak of around $100. After that, the uptrend ended, and a downward phase began, following the formation of a Double Top technical pattern.
The downtrend appears to have stopped near a support zone.
When zooming in with a lower timeframe, we notice that the downtrend halted around this area. The stock broke a descending trendline and formed a bullish Head and Shoulders pattern. The neckline was broken with strength, accompanied by a substantial increase in volume, coinciding with the release of earnings and revenue reports.
After the strong rally, the stock retraced and is now sitting at the Point of Control (POC) of a key volume area, which considers the entire history of the stock.
Bullish Scenario
The stock seems to be in a rebound phase after touching the POC. A continued upward movement could target the $7 area, which aligns with another significant volume area.
Bearish Scenario
If the POC area fails to hold, one could consider entering at the $1 level, which corresponds to a support area.
Note of Caution: The stock has experienced a massive loss over three years, dropping from $100 to around $1.50. Therefore, it’s crucial to proceed with caution when evaluating this stock.
Digitalturbine
APPS Pattern breakdown - Potential support levels APPS broke down the ascending wedge and although the volume was higher than yesterday it was not enough to reach the Volume 20MA. Might go down to test 22-21.4 area which is the next support where it also has support from the 50EMA. Please comment your thoughts. NFA
One of the Fastest Growing Companies in AdTechAfter a monster year of growth for Digital Turbine, analysts believe the expansion doesn't stop here.
Over the next three years, analysts predict the company will continue to grow EPS at a ~ 45% CAGR while expanding revenue at an average ~ 28% CAGR.
Although short-term liabilities outweigh short-term assets like cash and A/R due to acquisitions, it is predicted that the procurements of Fyber, AdColony, and Appreciate will help accelerate Digital Turbine's more prominent and profitable role in the fast-growing and secularly-thriving $200+ billion mobile ad/connected TV marketplace.
As for the technicals, we're witnessing a similar setup as the '18-'19 bull run that $APPS experienced. Distribution breakdowns into a falling wedge until volume begins to pick back up (breakdowns are primarily due to the macro environment, not the company's fundamentals). I chose the fiscal Q4 2022 ER date as a rough estimate for when $APPS might break the downtrend. By no means has Digital Turbine reversed course fundamentally, and I'd like the next ER to confirm that.
GLTA! (Disclaimer, I am long $APPS with both a long-term position and LEAPS call options).
$APPS - Digital Turbine Inc. LONG setup$APPS went through a 50% correction from the last high and even closed the gap from august 31st.
If we see a bounce in the tech market I would think that $APPS might perform very well.
This is NOT a longterm hold and investment at the moment, just a swing trade, so strict profit taking is advised!
Buy In: Now
Stop Loss: we literally pick the bottom here, so the stop has to be the low of the last candle at around 46$
Take profits like you see them in the chart
9/26/21 APPSDigital Turbine (APPS)
Sector: Technology Services (Packaged Software)
Current Price: $73.86
Breakout price trigger: $68.60 (hold above)
Buy Zone (Top/Bottom Range): $71.50-$64.75
Price Target: $81.00-$82.00 (1st), $89.50-$91.00 (2nd)
Estimated Duration to Target: 49-53d (1st), 147-155d (2nd)
Contract of Interest: $APPS 11/19/21 80c, $APPS 3/18/22 90c
Trade price as of publish date: $5.70/cnt, $8.15/cnt
APPS - overextendedRSI at 90, meaning extreme overbought levels.
The lower BB has curled up, and intraday volume has been below-average.
If we see a pullback; 20ema will line-up around $21.5, to test a short-term support.
I am SHORT until we see some consolidation after this parabolic move.
$21.5 could be a good place to enter a position.
APPS - breaking OUTAPPS is breaking out of its parallel channel; with a 10% move; while the technology keeps going down.
I have not seen any news that could create this move today.
Intraday volume has been above average by 70%. (tool being patented by Schwab)
RSI is oversold, but as we saw earlier, APPS doesn't mind reaching 90 level. Looking for a strong close today to enter a small position.