PING IDENTITY HOLDING CORP. ANALYSIS - 10 Nov 2020
I've had PING Identity (Ticker: PING) on my watchlist for a few months along with a few others. In my view, now is a good time to take the first SMALL position in this company, with emphasis on 'small'. My reasons are below:
1. Current price drop is as a result of the 3rd quarter earnings results, which shows a decline in revenue by 3% (down to $59.9 million from the last quarter).
2. Price is currently approaching 0.618 Fib retracement (golden ratio), which corresponds to $21.87. Since this is a very important FIb level, you can bet that many traders around the world are watching this level as a significant buying opportunity, so there's a chance that price will have a bounce back to the upside from there. This isn't a BUY signal to bet the house on 'PING' though hence I'm going in with a small percentage of allocated funds. Also see below for further reasons.
3. MACD is still in its bearish trend. If the price pierces through this level ($21.87), then there's a bigger chance it will fall further towards the 0.786 Fib level ($17.54), which will in my view, present another buying opportunity for many traders.
4. A 3rd entry zone will be around $14.89 - 16.50 lows pre-COVID, which shows 9-weeks price bounce off this level.
5. The obvious 4th entry level will be the COVID low of around $12.05. The big question for this level is this: Am I going to miss out getting in on the 3 levels above whilst trying to wait for price to reach this 4th level? What if it doesn't?
Summary:
1. The above gives investors good price points to DCA their existing positions, and
2. Potential investors good entry points to BUY into a good company with sound fundamentals.
1. Current price drop is as a result of the 3rd quarter earnings results, which shows a decline in revenue by 3% (down to $59.9 million from the last quarter).
2. Price is currently approaching 0.618 Fib retracement (golden ratio), which corresponds to $21.87. Since this is a very important FIb level, you can bet that many traders around the world are watching this level as a significant buying opportunity, so there's a chance that price will have a bounce back to the upside from there. This isn't a BUY signal to bet the house on 'PING' though hence I'm going in with a small percentage of allocated funds. Also see below for further reasons.
3. MACD is still in its bearish trend. If the price pierces through this level ($21.87), then there's a bigger chance it will fall further towards the 0.786 Fib level ($17.54), which will in my view, present another buying opportunity for many traders.
4. A 3rd entry zone will be around $14.89 - 16.50 lows pre-COVID, which shows 9-weeks price bounce off this level.
5. The obvious 4th entry level will be the COVID low of around $12.05. The big question for this level is this: Am I going to miss out getting in on the 3 levels above whilst trying to wait for price to reach this 4th level? What if it doesn't?
Summary:
1. The above gives investors good price points to DCA their existing positions, and
2. Potential investors good entry points to BUY into a good company with sound fundamentals.
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