Who says there are no gains to be had in this market? 🤔
Since posting about $LYFT’s setup back in early December, it is up 50% from its previous price at the time of that post (roughly $10 to $15). Those are some pretty amazing gains given the current state of the Market! Let’s take a closer look at where this stock currently is and where it may be heading…
As you can see from the above chart, $LYFT is at a very extreme RSI right now which means it’s overbought. This usually signals for us that it’s going to lose steam sooni-ish (even if temporarily) and it’s a good idea to take some profits.
You can also see that the MACD momentum has receeded some but is still in the positive. Its signal lines are still a ways apart which is good, but the bars leveling out confirm it’s a good time to enjoy some profits.
The 5 EMA and 20 SMA are still very far apart which is a good sign that the stock is on a continuing uptrend. This, and the previous price levels, bode well for more gains on the horizons.
The 200 SMA is also still above the current price and as we know, price is attracted to that like a magnet! These are those bread and butter trades.
Looking at some outside analysis below we can see that both TipRanks and Morningstar have the stock still undervalued:
Given all of these factors, I’ll be taking some profits but also riding this stock to a higher level as well.