$PRPL — Perfect Retest; It's Ready to Move Higher

PRPL could become one of my favorite trades on both a fundamental & technical basis.

Fundamentally it's dirt cheap; <20x EBITDA, ~3x sales on 50% GMs, 50% growth & 20-25% EBITDA margins.

Technically we perfectly bounced off $25. I am looking for the purple (prpl?) channel to break to the upside for push to $28 and then new highs.

I am holding April $30c avg $3.30

Commentaire:

Channel breakout is successful, now pushing first resistance of $28. Above here should see $30 fairly quickly. Above $28 (~50% retrace) should see upward/bullish momentum retaken. Calls are up 30% currently and holding.

Commentaire:

And there it is - target hit moments ago, $29.58, good enough — right at purple pivot

Commentaire:

Might be a good time to sell some covered calls. The $31 resistance along with the trend line resistance are the key factors in play currently. I am looking for a retest as deep as $28 and then we will see if $PRPL will continue it's upside momentum from there. It is possible this consolidates for a while in bullish falling megaphone. It should be said that the recent action in $PRPL is very bullish and displays serious momentum.

Commentaire:

$PRPL just loves technicals. Perfect falling wedge completes, breaks up. Call sells closed, added to position at $4.

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Also note the large inverse H&S. Trigger for breakout is $30.50 (H&S neckline) with first target of $33 (courtesy of KledjiCuni).

As I see it, a breakout of this wedge/inverse H&S should push up to the $50-$60 range.

Commentaire:

First target hit and broken. Expect some resistance at $31 but this has solid momentum. Should easily push to $33 and find more resistance there.

Commentaire:

PRPL just broke out after bouncing at trendline support. Should retest higher trendline at $30

Commentaire:

Still consolidating. Should test ~$30 and channel resistance — likely to reject first time but can certainly push through to first target $33