MPLN | Time to Start a Position? | BounceMultiPlan Corporation, together with its subsidiaries, provides data analytics and technology-enabled cost management, payment, and revenue integrity solutions to the healthcare industry in the United States. The company offers analytics-based services, which reduce medical costs through data-driven algorithms that detect claims over-charges and recommend or negotiate reimbursement; network-based services that reduce medical costs through contracted discounts with healthcare providers; and payment and revenue integrity services, which reduce medical costs by identifying and removing improper and unnecessary charges paid during the claim. It also provides health benefit plans, which features reference-based pricing and tools to engage health plan members and providers to make the use of benefits before and after care delivery. The company serves national insurance companies, Blue Cross and Blue Shield plans, provider-sponsored and independent health plans, third party administrators, bill review companies, Taft-Hartley plans, and other entities that pay medical bills in the commercial healthcare, government, workers' compensation, and auto medical markets. MultiPlan Corporation was founded in 1980 and is headquartered in New York, New York.
MPLN trade ideas
MPLN - Descending MegaphoneMPLN has formed a large descending megaphone with touches along the bottom line the only bullish area on chart
From this we can conclude once the current bear move finishes and a touch on the lower line is hit the bulls will come back briefly, against the trend
This is shown in the green circles
Red arrows for emphasis
MPLN Multiplan Corporation Currently At Long EntryA reward/risk above 3 is generally considered a good trade by smart money. A r/r above 6 is rare and I always take those trades. This might continue to find new lows and stop me out, but the risk is minimal compared to the possible reward at this current entry. I'm still bearish on the overall market for the coming months, but a short term bounce is quite possible and if MPLN holds this along with the S&P this week, we could have a serious runner based on price action.
MPLN shows great potential.
Stock has been consolidated and wants to break out of the wedge.
RSI oversold at 38
MFI way oversold with bullish divergence.
Stoch oversold and about to enter momentum area
MACD oversold and histogram about to turn over.
ER on 3 March. I would give a short term price target of $8.40.
$10+ Target for MPLN Post-ShortI have not taken a position on $MPLN given I like fast growth stocks, however this looks quite interesting. This stock has recently been institutionally shorted and in a way kind of hammered by a small blog/activist firm. Now, $MPLN is about to release earnings extra early tomorrow. This might be a good buy entry opportunity. I do think a possible short squeeze can happen given what the market's reaction was today. That said, do your own due diligence, proceed with caution and invest at your own risk. Everything I say is on an opinion based basis.
