SMPL: ABC correction completed, stock goes higher
SMPL has completed an ABC correction in which C = 1.618 extension of the A wave. I am going to call the move off the March lows a Wave 1, with the low on 5/2 being the bottom of Wave 2. As long as that low of $15.91 holds, the stock will proceed higher in a Wave 3 to reach the minimum price objective just over $22, but can extend to at least $26 prior to a correction (these are the 1.0 and 1.618 targets respectively). Specifically I am eyeing a move to the $22.5 level which had acted as a key support level prior to the February selloff.
The 5 day EMA just eclipsed the 20 EMA on Friday 6/4, which shows the short term momentum is strong enough for the stock to break the 50 day EMA and begin, what should be, a powerful move higher.
Stock has also formed a double bottom / Inv . H&S pattern during this near 3 month consolidation.
I am confident this stock will move higher
The 5 day EMA just eclipsed the 20 EMA on Friday 6/4, which shows the short term momentum is strong enough for the stock to break the 50 day EMA and begin, what should be, a powerful move higher.
Stock has also formed a double bottom / Inv . H&S pattern during this near 3 month consolidation.
I am confident this stock will move higher