PODDDoes look bullish. OverSold on daily, Golden pocket, KDJ Bullish.
If we go past my target or hold that level and not go down, it's full continuation of Bull for this stock.
Insulet (NASDAQ: PODD) stands as an innovative medical device company committed to enhancing the lives of individuals grappling with diabetes and related conditions through its groundbreaking Omnipod delivery system. PODD mission is deeply rooted in personal experiences, with many of us directly impacted by diabetes. They advocate for their customers, affectionately known as Podders, and the broader diabetes community.
PODD trade ideas
Weird straddle/tight strangle Had a strangle go wrong in PODD. So I added a straddle on the call leg of the trade. I only plan on holding this position for a week. I sold 2 130 calls for Nov 17, one 130 put for Nov 17, and a 125 put for Nov 17 for a total of 33.40 cr. Target profit is 20% stop loss is 50% of credit received, so 670$ and 1,670$ respectively. I expect to exit this position before 10/18
PODD is extremely oversoldDespite posting decent earnings, NASDAQ:PODD has been weathering a massive selloff and is now in its historically strong area of resistance. It has strongly rebounded from this area every since 2020. On the daily chart, the RSI 20 is at the most oversold level the stock has ever been. The last two times it was this oversold it rebounded around %40-%50 within the next month. It's looking as if there could potentially be a massive bounce upward on the way. Definitely keep your eye on this one. s3.tradingview.com
PODD attempting to break out of it's steep earnings selloffNASDAQ:PODD I published yesterday that this stock has a long history of steep selloffs immediately followed by steep rebounds upward with multiple selloffs rebounding off of this same price level within the past 3 years. This could potentially be another of those rebounds. Sell the news traders have driven the stock in a steep decline despite positive earnings, and it is showing signs of doing what it does best. That is to massively disappoint for a week, then massively reward dip buyers. The 20RSI on the 4 hour chart is attempting a crossover, and it just hopped above the line of resistance it has kept for this selloff. I'm keeping an eye on this for the next couple days, especially when the broader market is attempting to restore order from it's recent correction. I will likely enter if it successfully uses the resistance line as support.
What the?The market goes from insanity to insanity. That is a given. Stay rational while others are losing their heads. This stock may be a case in point. It looks like its real value is in the price of the stock and not for any other reason. It doesn't seem to return anything to shareholders except the hope that another sucker will be drawn in by its high price - at a still higher price. Hope is best used to invest in lottery tickets.
NOTE: its earnings are this week.
This video (youtu.be) got me thinking about such absurdity. Also, consider that the S&P is still in massive bubble territory concerning the Shiller PE ratio (see www.multpl.com).
Even as the value of fiat money eventually makes its inexorable way to zero not all assets will perform well all of the time. Hyperinflation requires hyper-volatility.
Another I like in this category is MNST.
PODD Entry, Volume, Target, StopWhen price clears: 328.87
With daily volume greater than average
Target: 389.00 area
Depending on your risk tolerance: 308.85 gets you 3/1 Risk/Reward.
This trade idea is not trade advice. This idea is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
Two healthcare leaders, which one is best to own? NASDAQ:PODD & NASDAQ:DXCM are leading the sectors recovery.
Both are in the Medical Products Industry for diabetes.
Insulent (PODD) normally outperforms DexCom (DXCM) during and after a correction. Then, when they are in sustained uptrends, DXCM outperforms.
For the recent correction, PODD has a -45% deep base while DXCM has a -58%.
PODD bottmed 4 weeks before DXCM, but DXCM has rallied +74% and PODD +65% since.
So, it really depends on your strategy. If you are looking for aplha then NASDAQ:DXCM is the stock for you but, if you prefer low beta then NASDAQ:PODD is better.
Remember that aplha plays in both ways!
Which are you trading?
I'll trade the first that makes a new high.
$PODD Insulet Pennant Formation.Looks like $PODD is getting ready to break one way or the other here. Notice how there was a big jump in volume, about 6.5 times the average on the earnings reaction. Since then both the price and volume have been contracting and getting ready to be squeezed in one direction or the other. In a bull market my bet would be that it would resolve higher. However, in this market I’ll be watching and look to trade this in the direction it breaks to, up or down. Hope this helps someone. If you take this trade, make it your own by following your rules for entry and money management. Ideas, not investing / trading advice.
Holding the Earnings GapPODD had a massive earnings gap breaking out of a cup base. Since then, there has been an orderly pullback to the low of the gap up day which sits just above the 21 ema. After staging an upside reversal candle, this was buyable the next day as it pushed over the high of the upside reversal. This buy already triggered; however, it remains right in buy range and is still actionable.
Insulet analysis for the next 12 monthsPODD has performed really well over the last five years. And if they can continue to capture market share with Omnipod, then they should continue upward assuming no hiccups or missteps in R&D.
After its last earnings report in May 2021, stock price dropped about 25% on missed earnings per share. But it’s increase in revenue YoY is definitely promising as long as they can control their costs. investor.insulet.com
*note: this analysis is based on an outlook over the next 12 months*
$300-304 is a key level of resistance, so I would watch that level closely. It’s touched that level twice since the beginning of the year. A strong confirming uptrend would be for PODD to break above $304, maybe to $315, and then retrace and hold the $300-304 level as a new support level. If it can break that resistance and become a support level, we should see a move up to $380 by next year. Also watch the grey support line below the trend. If it comes back down to that grey support line and bounces off, then it could be a good time to add to the position. If it breaks below that support trend line, I would watch it very closely and determine at what point you want to cut your losses.
$PODDEntry price: 247.99
Fundamentals:
- Sector: Medical - Medical products
- EPS % Chg (Last Qtr): 1600%
- EPS % Chg (Previous Qtr): 1000%
- 3 Year EPS Growth Rate: 78%
- EPS Est % Chg (Current Yr): 100%
- Sales % Chg (Last Qtr): 22%
- Sales % Chg (Previous Qtr): 28%
- 3-Year Sales Growth Rate: 27%
- Annual Pre -Tax Margin: 2.0%
$PODDPosition :
Entry price: 266.66
SL: 253.65 (-4.88%)
TP: 302.99 (+13.62%)
R:R: 2.79
Fundamentals :
Sector: Medical
EPS % Chg (Last Qtr): 1600%
3 Year EPS Growth Rate: 78%
EPS Est % Chg (Current Yr): 105%
Sales % Chg (Last Qtr): 22%
3-Year Sales Growth Rate: 27%
Annual Pre -Tax Margin: 2.0%
Technicals
Cup with handle
PODD: Buy at $234.09 Profit Taking at $292.61The diabetes market is ripe for innovation hence there is intense competition in the market. Some of the competitors are TNDM and NASDAQ:DXCM , which both of great institutional sponsorship. The reason why PODD is up is due to the technical formation with a lower risk at a defined buy point. There is a consolidation base at the weekly chart and the daily chart is shaping up nicely although still with some 7% drops as shown. If it passes $234.09 with volume then it would be a great candidate to hold and observe the price action.
One of the great things about this company is that it is showing great earnings and has partnered up with DXCM to improve their product. Fundamentals are below
Sales:
Sep-19: +27%
Dec-19: +27%
Mar-20: +24%
Jun-20: +28%
Yearly EPS
2017: -0.46
2018: 0.05
2019: 0.19
2020: 0.36
2021: 1.23