Hey everyone,
You may know that I follow Stage Analysis based investing to benefit from the recent bear market in 2021 and 2022, when the stocks recover after their downturn.
One of the recent ones that came under my radar was $OKTA.
$OKTA had a nice earnings beat and raised guidance for next quarter which the market liked and had a big gap up this week. This takes the stock out of the stage 1 base in my view. There were couple of failed stage 2 breakouts in the last 6 months (Red arrow in the chart below). Will this breakout to stage 2 at the back of positive earnings reaction hold?
Will this get going on its 3rd attempt to breakout? With the market resuming its uptrend and looking at the earnings reaction, I feel optimistic about it.
Looking to the left of the chart, we can also see how the stock followed various stages uptrend, basing and downtrend historically as well which gives a good visual depiction of Stage Analysis stages.
I took a position in $OKTA on earnings gap to see if it follows through into stage 2 uptrend in the following months.
What do you think? Share your thoughts on the comments section.
Happy learning and successful investing.
Disclaimer: This material is intended for educational purposes only, and is not recommendations to buy or sell any financial instruments or products. Do your own due diligence and make your own decision. The value of your investments can rise as well as fall. Capital is at risk when investing in any financial products. You could get back less than you invested. Past performance may not be indicative of future results.