RIOT BLOCKCHAIN - 1D CHART ANALYSISHello and Merry Christmas Everyone! Please watch the video and feel free to let us know your thoughts and opinion in the comments below.
RIOT trade ideas
RIOT heading into next yearWe have a gap at $11 after having a strong week, we broke the $15 and retested it and failed multiple times to hold $15 as a support. Yesterday we dropped to $13 and for another attempt at $15. We saw a slight moment of a retest before getting a strong rejection into closing and after hours. Today riot retested $15 and failed once again leading to a mass sell off.
Target is $11.
Closed long's at $15.48 opened $8.30 $3 calls
Resistance being metI would be very cautious into the new year with this stock. Looking into the gains we are seeing it will be difficult to move out of these resistance bands as we have met some heavy resistance since falling off of average volume today.
I was stupid to sell this a few days ago, but taking any form of profit is never stupid. Realize your gains at this point and take at least 25% of your chips off the table until we meet another buy spot.
Long term this is still running its course and will look to gain more, however over the next week or two I think we could see a few red days if Bitcoin decides to take a dive.
RIOT: The ultimate guideUnfortunately I had a sell limit at $11.50 that triggered the other week and I'm really regretful because I have conviction in this company. As a result of this unfortunate event, I've decided to share my ultimate breakdown of this company looking forward, I truly believe in this company & hope to inspire some other investors to take a look and buy some :)
The Model
Although Riot is nothing like IIPR, they are in fact very similar. I'm talking about their business models! I'm unsure if a name exists for what I'm about to explain, however for simplicity I like to call it The Perpetual Asset Model.
This model consists of a few steps which are the basis for the growth and allow the company to rapidly expand operations and thus increase both vAssets and vEquity without the need for debt financing. The steps are as follows and are very simple to understand:
(1) Issue equity to raise capital
(2) Use capital for OPEX (e.g., buying ant miners, or property in the case of IIPR)
(3) Seek a tangible ROI (e.g., +mining bitcoin, or rent in the case of IIPR)
Riot can increase the vAssets by issuing equity to buy more ant miners and mine more bitcoin. Usually issuing equity is not good for shareholders (duh) because it dilutes the value per shares. However, there is more than meets the eye, I used the word perpetual in the model's name, lets understand why:
As Riot increases its hash rate with more ant miners, it'll be able to mine more bitcoin and therefore generate more profit, so the reason this model is perpetual lies in the value of bitcoin. If the value of bitcoin (an asset on their balance sheet) increases faster than the equity dilution deteriorates share price, then equity will actually rise in value instead of fall. I used IIPR as an example because the property they buy with cash raised from equity offerings goes towards property that both generates income and appreciates in value (they also sign a 4% annual rent increase YoY with tenants).
So the perpetual nature of this model is a function of bitcoin's value. As bitcoin increases in value and Riot issues more equity to increase mining capability, it'll eventually be able to self-sustain OPEX by (1) mining more bitcoin, (2) selling bitcoin as it increases in value, and (3) using these funds to further grow its operational output, just like IIPR is doing (except their bitcoin is the rent increase YoY + property appreciation equivalent).
In short:
- The assets on their balance sheet will eventually be fully self-funded solely by the appreciation of bitcoin
- Early on, if Riot keeps X% of the bitcoin they mine and issues equity to fund operational expansion (increase mining capabilities), and if bitcoin does keep increasing in value, they'll eventually hit a point where:
PV future profits from increase in mining capabilities > funds received from equity issuance
And therefore, in theory, they'll eventually mine enough bitcoin and have enough on their balance sheet to fully self-fund operations
I hope you all enjoyed this, just me geeking out on some corporate finance stuff (haha), I will be repurchasing Riot very soon, leave me a comment or question, would love to answer! And don't forget to like!
RIOT reversal ready?!Sitting nicely on the point of control volume shelf which is also the 61.8% on the fib retrace. TTM Squeeze and MACD's setting up to the upside.
RIOT Unusual Call ActivityUnusual OI and call volume on the the 1/15/21 $15c. Check with your broker but TD showing big spike on 12/16, 12/17 & 12/18.
Following its lower trendline, caught horizontal support as well as the support on the 8 EMA. I'd like to see a break on the upper resistance trendline on the RSI before making an entry.
RIOTGap filled and not yet parabolic. If you get bored chasing TSLA - this could be the next YOLO play for the masses. I'm in 21JAN22 $3 Leaps so I can write against.
RIOT updateold my remaining shares today at $11.50, has a limit sell at the price and it got triggered.
For the coming month I'll mainly be playing options while the market rallies then I'll go back into swing trading a little more!
My options list:
$AMD above 98 (already in)
$CRM above 227
$ZM above 404
$BA below 219
$PLTR above 29 (already in)
RIOT BUY LONGThis particular stock shows signs of high institutional buy in, looking at the gap index compared to the stock's daily price movements.
Looking to break out of this patternWill most likely follow this pattern into the new year. Have reduced shares and will look to re-enter during the next bull run for bitcoin.
Staying within the uptrend channel.RIOT continues to stay within the uptrend channel. Chart Looks good and MACD looks ready to go green. Considered selling my position, but i believe RIOT and MARA will go higher with Bitcoin expected to hit 21k by the end of the year.
RIOT updateThe last 5 trading sessions that saw the price take a breather, or correction, have been on lower volume. Combined with bitcoin's choppiness, I believe this was nothing more than a shake down and people taking profit (as I have, I sold half my position).
I don't have a price target anymore because bitcoin could rally and cause this thing to fly beyond what I'm thinking
Nice Pattern into New Year!Ive resinded all of my shares and have taken a bit of a vacation with Cyberpunk coming out and will reenter on the next downward slope. I am hoping that we follow this trend to allow for an entry. However Bitcoin does not seem to be bouncing down right now and it is throwing this stock into a very good territory. Will revisit this stock in the coming weeks.
No price targets for me just yet. Stay tuned for another entry.
Riot staying with the wedge. RIOT is still within this uptrend, and i expect the uptrend to continue. Long term bullish on RIOT.
RIOT updateLittle update here:
(1) lower volume
(2) playing off both the 50ema and 1.618 Fibonacci line
(3) BTC consolidating (forming a base)
(4) market timing, every morning we're seeing distribution followed by accumulation, this has me believing we're in tax season (sell-off)
I'm a buyer at $8-8.20 or $7-7.50, depending on how the volume the picks up and dries up over the following few days, sitting on 30% cash and still need to sell my 1 loser. Fresh powder will get diploid when the price is right, patience!
RIOT is ready to GO down, but to where?Like Mara , Riot has a cap at 6.50... and Mara has filled its cap.
If bitcoin is cooling off, Riot might down to 6/7 area.
RIOT going back under 8 I hope this thing won't go down too deep
Bitcoin is cooling off too. But Riot had a great up trend , incredible.
The question is really when bitcoin can go over 20K?
The only miner that could outperform Bitcoin..!When I compared RIOT with Bitcoin, it is completely obvious that this Bitcoin miner has always outperform Bitcoin during bullish rallies!
I believe the next big market fever hovering around Bitcoin and it’s miners!
RIOT 11/23/2020RIOT seeing a huge rally due to BITCOIN rallying to all time high's as we approach December another a bull phase of BITCOIN we can expect RIOT to rally as well, Last Friday we had a great entry on RIOT @$5.80
RIOT opened today with a strong move up to $6.20 pushing all the way to $7 before seeing momentum and volume slow down.
Scenario A: RIOT see's another move up to $10, with our target $20 as that is All Time High in 2017 during the bitcoin bull phase.
Scenario B: RIOT has a pull back @$6 to fill the gap from the strong move we saw this morning
RIOT $15 target if BITCOIN stay's bullish
Acquire positions when RIOT dip's
Uptrend channel.RIOT looks to be in a bullish uptrend. Trend is your friend. As long as this stays within this channel we should see this pass 10 bucks. If it breaks the channel up that is good too. Im long term bullish on RIOT and MARA
