NASDAQ:CLOV has this insane, speculative expanding wedge/triangle pattern forming. I mean, there's absolutely NO SHOT this can actually play out. It HAS to be just a coincidence...... right?
The featured content is intended to be used for informational purposes only. Everything shared here is my own opinion. It is very important to do your own analysis before making any investment based on your own personal circumstances.
Commento
⋅
Slightly lower % gain when pictured on the weekly chart.
In this case, I think technical analysis of the chart doesn't take into consideration the formation of this ticker via SPAC, or wider market conditions. Generally, for established tickers, or tickers that IPO'd via a traditional underwriting scenario, then I think an argument can be made that technical analysis of a chart does incorporate all the relevant factors affecting price. However, SPACs do not undergo such scrutiny, hence the term blank check. So, I believe we are seeing the price retreating not only because of the short seller attack regarding DOJ inquiry, and greater market turmoil, but also because the market is searching for the proper valuation for CLOV. Arguably, at $9.50, its still an expensive valuation given the time and amount of money required to obtain profitability. So... mix in the extremely bearish sentiment of DOJ inquiry, SPAC formation, valuation, any typical chart patterns will not play out for well over a year.
jstrasburger
⋅
@colindepew I absolutely agree with you. Thanks for your input!
Just an observation that I wanted to share. Sometimes charts have a crazy way of forecasting the improbable, regardless of the fundamental backdrop.
colindepew
⋅
@SCOTCHstocks, True. It would be one hell of a roller coaster to see the chart play out that way. If for nothing else, I'd love to see Hindenburg put its foot in its mouth. I get the impression Vivek Garipalli would do another expletive ridden Forbes interview due to his excitement.
jstrasburger
⋅
@colindepew, when you hit play, we hit this target almost to the exact day. Technical analysis is crazy sometimes.