Long $GRMN - GARMIN. GRMN.NAS Long GRMN.NAS- @ best price available below 160. Currently trades @ 155
TA Highlights
- RSI @ 24 and turning upwards. (add more on break of 30)
- Bounce of 200 DMA
- Bounce off lower Bollinger bands( on the 3 previous occasions this occurred in 2020, the stock went on to return 8.8% in the next 20 days.
FA Highlights
- CAPEX increased from 185m (2020) to 385 (2021) and managed to hold a steady cash flow. Should pay off in 2022
- R&D expense increase from 605M (2020) to 705M (2021) $705M. Should pay back with new to market products in 2022.
Sector Highlights:
- Garmin has 'moat' on marine and aviation GPS systems.
- Aviation: revenue expected to normalize back to 2019 levels in Q1 and through 2022.
- Fitness: European market for wearables increased 28.5% yoy through Q1 2021. Garmin fitness revenues increased by 31.5% suggesting increasing market share.
Wearables
Potential Driver for AppleIt was said that the Cupertino, Calif.-based company began distributing the 5G-enabled iPhone 12 series last year. The handsets have display sizes of 5.4, 6.1 and 6.7 inches and starting prices ranging from $699 to $1,099. With the iPhone business maturing, people are wondering what could be next potential driver might be for Apple stock. it was said also that Lately, two businesses have given potential boost services and wearables. Whos excited for their next potential driver? Hit the like button.
Getting fit with FITWhere exactly is Fitbit headed to?
After a showing signs of a bullish gartley chart, all FIT needed was a really great earnings report to piggy back off a great bullish gartley formation. Trading movements can be somewhat predictable with TA but remember that dramatic movements require real FA.
Looking at the daily chart, we see the pre-ER hype + technical bound rising out of the descending wedge to a breakout attempt, only to be squashed down by what some would classify as a dissappointing ER. FIT's attempt at a breakout became a mess and even hit a new ATL.
So, is it all over for FIT ?
Maybe not.
There's a few interesting things that happened on the day of the post-ER.
Gap drop
Doji formation
Volume ticker that exploded into the green, to a level we haven't seen since August 2016
In combination, I would translate this action as accumulation movement.
Short term wise, this analysis would make sense given the price action for the past few days since hitting ATL.
Long term wise, FIT is at the mercy of proper FA before TA can support any massive movements - til then bears are in control.
