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

13 lis 2020

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 [I]perfectly[/I] 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

17 lis 2020

Uwaga

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.

17 lis 2020

Uwaga

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

22 lis 2020

Uwaga

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.

25 lis 2020

Uwaga

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

25 lis 2020

Uwaga

26 lis 2020

Uwaga

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.

29 lis 2020

Uwaga

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.

17 gru 2020

Uwaga

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

22 gru 2020

Uwaga

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