Finding Tech exposure via AppLovin CorporationOverview
Applovin Corporation (APP) is a stock that has shown significant price appreciation over the past three months. With a trading volume that rose to 51% of its average daily volume in the previous session and a year-to-date price movement of 115%, APP presents an attractive opportunity for investors.
Strategy
This trading idea focuses on selecting stocks that have demonstrated strong price appreciation and high trading volume. By identifying assets that have performed well in the market and are actively traded, there is a potential for substantial returns.
Logic
The core logic behind this strategy is to take advantage of the positive market sentiment surrounding APP. The stock has shown consistent growth over the past three months, indicating strong investor interest. Additionally, the increased trading volume in the previous session suggests that there is heightened activity around APP, further reinforcing its potential for growth.
Technical Outlook
It appears that Applovin (APP) is closing in on a key support level at $34.63, with the stock approximately 40 cents away from testing this level. Dropping below this support level could indicate further losses ahead, while failing to break below it may be viewed positively by bulls, with a retracement likely.
Applovin's price action is also nearing a key Bollinger Band® level of $35.27, following bearish price action and heavy selling. This could further add to the pressure on the stock.
In today's session, Applovin's downtrend continued as the stock shedded 29 cents or 0.79%. Yesterday, the stock closed at 36.44, with a range between 36.27 and $37.28, showing no clear direction.
Despite the recent downturn, Applovin has outperformed the Nasdaq by 117.91% this year and currently has a market cap of $12.67 billion. However, trading volume was 51% lower than average yesterday, indicating a lack of strong market interest.
Overall, based on technical analysis, Applovin is currently rated a 'Strong Buy' despite the bearish market mood. Investors should closely monitor the stock's movement as it approaches the key support level and Bollinger Band® level.
Other themed assets that saw positive movement yesterday include Intel, which increased to 36.50 from 35.69, ServiceNow with a 2.34% gain, and Accenture plc Class A (Ireland) with a 1.5% increase.
Conclusion
Based on the provided facts, the trading idea is to buy Applovin Corporation (APP). This asset has exhibited significant price appreciation and has attracted high trading volume, making it an attractive investment opportunity. However, it is important to note that this strategy requires a moderately short investment horizon and a high risk tolerance, as the price volatility of the stock may result in potential losses.
