FSLY trade ideas
FSLY LongNice opportunity with Fastly.
After a price collapse and a huge gap down, the stock starts rising back.
We can see a double bottom pattern on support, we can see trendline going up, we can see support in 20 and 50 EMA, and bullish engulfing candles in recent days.
The signs say give it a try.
Double Top w/ HandleBull case:
1. First retest of 50ma
2. Back to major consolidation
3. Stoch and Osc both oversold into a uptrend.
4. Retrace to Fib38%
5. Rev grew by 45% over the past year, and is expected to grow another 30%
Bear Case:
1. Broke major trend line on volume
2. Broke 20ma and hanging onto 50ma for too long
3. looks like double top and hanging out at neckline.
3. Earning expected to decline over the next 3 yrs and net expected to be profitable anytime soon.
4. Lots of insider selling and analyst downgrades over the last month.
5. In same sector as CSCO and AKAM which aren't doing great. .
ATR ~8.00
Float 81M
Short Interest 9%
Will enter small short on break of $72
FSLY Demand Zone Buy the Dip OpportunityFor DIP buyers Bullish on FSLY stock.
The green box is an optimal entry area to buy the dip.
Buyers already getting a head start as you can see price began to trade in green box and dip buyers saw the opp to buy at demand zone pushing price back above box- creating the wick.
Here I have 3 possible scenarios. Follow closely for whatever plays out then trade accordingly:
1) : Simple buy the dip opportunity. As price enters green box buy the dip with 1st target of $94 (look for divergences on smaller TFs for BTD confirmation)
2) ]blue arrow]: IF bulls fail to regain momentum and we lose green box. Patiently, wait for green box to be reclaimed then long the green box retest with the same target of $94
3) : IF price closes BELOW green box and bears continue to show strength. Wait for a retest of green box and IF bulls fail to get back above short at the green box targeting the lower green box at $65.
Notes to consider: All lower time frames are in oversold territory.