HNST: When honesty turns into a breakout formationOn the weekly chart, The Honest Company (HNST) is shaping a textbook broadening formation. Four waves are already in place, and the fifth is unfolding. The recent bounce came exactly after a retest of the long-term trendline at point (4), pushing the price above the critical $4.97 resistance (0.236 Fibo) — a clear signal that buyers are reclaiming control.
Volume is steadily rising, and the golden cross (MA50 crossing above MA200) further confirms a mid-term trend shift. The volume profile above current prices is nearly empty — indicating minimal resistance. Immediate targets are $6.33 and $6.94 (0.5 and 0.618 Fibo), while the full breakout projection lands at $8.91, $10.31, and even $12.09 (based on 1.0, 1.272, and 1.618 expansions).
Fundamentals (as of June 28, 2025):
— Market Cap: ~$460M
— Revenue (TTM): ~$344M
— YoY Revenue Growth: +7.6%
— EPS: –0.18 (loss narrowing)
— Cash on hand: ~$24M
— Debt: under $10M
— P/S ratio: 1.34
Despite being unprofitable, HNST is showing strong signs of operational improvement — rising gross margins, controlled costs, and increasing leverage. Growth in both online and retail sales adds further support. With institutional buying picking up, the market may be slowly re-rating this small-cap FMCG player.
Trade Plan:
— Entry: by market
— Targets: $6.33 → $8.91 → up to $12.09
When even an "honest" stock starts drawing broadening patterns and volume’s rising — it’s not a hint, it’s a launch sequence. And the bears? Might want to take a seat in the back.
HNST
HNST Cup and Handle BreakoutHNST is looking really good on the daily chart. It's already tripled off the lows, but is in the end stages of a textbook cup and handle and currently grinding up at resistance. A volume breakout, or a red to green open should send this straight through that $3.50 resistance. RSI held 50 and is now creeping it's way back up slow and steady. Could be due for another explosive move.