July 17, 2023

3 for 1

Monthly chart


A stock split does not necessary change valuation of the company, it simply dilutes the value of shares in issue. however, it may drive optimism on the  share and cause share price to appreciate. A stock split is the same as diving a pie into smaller pieces, the size does change but more people can now get a piece. The psychology behind it is interesting but let us look at the charts.

Although we might see more interest in the stock in coming days,  but the monthly timeframe has not yet confirmed this. As shown on the left chart, there is a potential head and shoulder ( marked in red arrows) and this can potentially push price to as low as $189/share.


Daily chart


The daily chart  is showing something interesting that is worth noting. The stock has recently rejected at a supply zone of $286/share and it is set to test the resistance at $313/share. However, the two zones can simply act as our accumulation zone, a break below or above each level will give a clear direction of the market. A break above $313 will signal a bullish continuation and will take the stock to $364/share, but a break below $286/share will take the stock to $189/share as stated on the monthly chart.


I will be monitoring the stock very closely and will update my analysis accordingly.


Disclaimer: None of the information shared above constitute financial advise. The information shared is just a true reflection of the author's opinion and experience. Seek financial advice from a registered financial advisor.



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