$DUOL >55ema, looking for DTL break $DUOL momo type earnings recently, v.popular app- one of the biggest earnings upward revisions,
47% rev growth, 55% bookings etc. Wouldnt be surprised if it caught on.
DUOL trade ideas
US Stock In Play: $DUOL$DUOL technology name, IPO 7 months ago.
rising 10/20 MA with bullish crossover after 6 months of decline. volume remains subtle as it continues to build a base beneath the highlighted DTL.
$102.55 is a clean pivot that would take this name out of its DTL, and YTD resistance
Duolingo & Monday.com - Stops TakenDuolingo & Monday.com - Stops Taken
You win, you lose, that's how it goes...it's called risk assets.
Original ideas attached.
Trade Setup: Long DuolingoDuolingo is an American language-learning website and mobile app, as well as a digital language proficiency assessment exam. The company uses a freemium model: the app and the website are accessible without charge, although Duolingo also offers a premium service for a fee.
Price through $183.00 pivot
Now trading $190.00.
Stop: $185.80
Target: $205.00
Duolingo Indicators Are Flashing RedAs an update, Duolingo appears to be testing the limits of its rising wedge pattern.
Mathematically speaking, when the price breaks out of this pattern, a 27.52% move is in store. If it happens soon, this would line up very well with where most analyst price targets are located ($145 range).
Other significant indicators are also becoming more bearish:
1. The RSI triangle is becoming narrower with a break to the downside likely.
2. The Chaikin Money Flow is showing that investment has been drying up for the last week. DUOL isn't dominated by insiders or institutional investors; the CMF decline represents retail losing confidence in elevated prices.
3. The MACD also had a death cross last Friday and is headed downward.
4. Not shown here, the Schaff Trend Cycle indicated Friday a "Sell Signal", meaning that a significant downturn is in the short-term.
The 3 white circles demonstrate where we should see trendline breaks if a correction were to begin early this week.
Duolingo has overshot any reasonable valuation.Although Duolingo only has a short price history, it appears that a dramatic pullback is ahead. The stock is in a rising wedge pattern (4 hr chart) most likely resulting in a 21.43% correction downward. The volume has been drying up drastically this week signaling the stock is too weak to break the $205 barrier. Analyst estimates hover around the $145 mark and most message board activity I have read supports the idea that retail investors also believe the stock is overvalued.
Importantly, Duolingo is a speculative, long-term tech play that depends on cheap access to capital to reach their financial goals (similar to TSLA), because interest rates are increasing so much in the last few days (10-year treasury up 12% in last 2 days alone), it seems probable that investors will rebalance their portfolios away from risky stocks like this one and take profits while the price is still at all-time-highs.
The RSI indicator is in a triangle formation while simultaneously showing bearish divergence; this pattern only has a few more days maximum before a break must occur and with the volume oscillator indicator showing volume deep in the net-outflow range, we can expect the price to break downward.
My strategy is to purchase Oct 15th $165 Puts and plan on selling these when we get closer to the $155 range. I would caution anyone else planning on doing the same though, Duolingo's volume is very low and the options chain has very little open interest, the liquidity of the market is not ideal.
