Synchronoss Technologies, Inc - Bullish divergence** Risky Investment opportunity - $200m market cap **
Happy with the risk? Read on…
As the year comes to a close I look for those value stocks, that is stocks that appear to be very undervalued, and are now showing strong bullish signals for the year ahead. I then publish them freely for all, aren’t you lucky?
On the above 10-day chart price action has corrected 95% since late 2016 from 50 to 2.60 without any share splits. Can you believe that? Now is an excellent time to be bullish, why?
1) Price action prints an oversold condition @ $12 back in 2017.
2) A regular bullish divergence emerges following the oversold condition. With each new lower low in price action a higher low in RSI + MFI is printed. You can see the growing weakness in selling pressure.
3) RSI resistance breakout + support (red line). This is significant.
4) On the 2-month chart (below) a dragonfly DOJI candle printed. Such candles on this time frame should not be ignored, they are powerful. Previous events highlighted.
As technology stocks go it is surprising to find those amongst the big overbought stocks, but they do exist. Certainly worth a look over as businesses using synchronoss continue to grow in number:
synchronoss.com
Is it possible price action falls further? Sure.
Is it probable? No.
Good luck!
WW
2-month chart - Dragonfly DOJI + bullish oscillators
