SOS Stock Price Prediction: No SOS signal needed as shares rally 8% and send out a bullish engulfing chart
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UNLOCK OFFER- SOS shares continue to stabilize despite Bitcoin's bumbles.
- The cloud-services-turned-crypto-miner's shares are a well-followed retail meme stock.
- SOS sheds 2% in Wednesday's pre-market after a strong showing on Thursday.
SOS is a Chinese company involved in providing cloud-based emergency services to businesses and individuals. SOS provides information security solutions for emergency roadside assistance, emergency healthcare and emergency living assistance. SOS also has an involvement in the cryptocurrency mining business.
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SOS stock forecast
SOS shares have been strong in 2021 with a gain of 190% plus so far. The main reason for this has been the company getting involved in the cryptocurrency mining sector and blockchain.
SOS is the subject of much hype, rumor and frenzy, so it needs to be treated and traded accordingly. This is not a Buffet-style, long-term play. It is a stock to trade the momentum, reap the rewards and get out before it is too late. So careful risk management and identifying key chart points and trends are important.
The initial spike up to nearly $16 was too fast, too furious as SOS was much too stretched. This was peak GameStop retail frenzy. This spike has never come even close to being matched. Further spikes gave us the downward sloping trend line that SOS broke through on April 7. SOS shares rallied 28% on this day amid rumours of a short squeeze across many social media sites.
Since this aggressive move, SOS shares have fallen steadily. This move also failed at the significant 100-day moving average resistance.
Now we have some confusion in the chart. Ordinarily, we have bearish signals as SOS has broken the lower range line at $4.25. MACD is still crossed into bearish territory and the DMI is also crossed into bearish territory. To trade the bearish view effectively use the $4.67 area to initiate short positions as this is resistance from the 9 and 100-day moving average. A tight stop should be used on a break of these averages. A break lower leads to a target of $2.77. It should be noted given the volatility in retail meme stocks that going short is better achieved using put options to manage risk.
Tuesday has produced a bullish engulfing candle, which may halt the recent slide. Taking a long position the initial target will be the convergence of the 9 and 100-day moving avearges at $4.67 and further resistance/targets are at $5.16-$5.36 from the 21 and 50-day moving averages. The April 7 high of $6.17 will be the pivot for any bullish move. Here it may be prudent to significanlty reduce longs.
The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
- SOS shares continue to stabilize despite Bitcoin's bumbles.
- The cloud-services-turned-crypto-miner's shares are a well-followed retail meme stock.
- SOS sheds 2% in Wednesday's pre-market after a strong showing on Thursday.
SOS is a Chinese company involved in providing cloud-based emergency services to businesses and individuals. SOS provides information security solutions for emergency roadside assistance, emergency healthcare and emergency living assistance. SOS also has an involvement in the cryptocurrency mining business.
Stay up to speed with hot stocks' news!
SOS stock forecast
SOS shares have been strong in 2021 with a gain of 190% plus so far. The main reason for this has been the company getting involved in the cryptocurrency mining sector and blockchain.
SOS is the subject of much hype, rumor and frenzy, so it needs to be treated and traded accordingly. This is not a Buffet-style, long-term play. It is a stock to trade the momentum, reap the rewards and get out before it is too late. So careful risk management and identifying key chart points and trends are important.
The initial spike up to nearly $16 was too fast, too furious as SOS was much too stretched. This was peak GameStop retail frenzy. This spike has never come even close to being matched. Further spikes gave us the downward sloping trend line that SOS broke through on April 7. SOS shares rallied 28% on this day amid rumours of a short squeeze across many social media sites.
Since this aggressive move, SOS shares have fallen steadily. This move also failed at the significant 100-day moving average resistance.
Now we have some confusion in the chart. Ordinarily, we have bearish signals as SOS has broken the lower range line at $4.25. MACD is still crossed into bearish territory and the DMI is also crossed into bearish territory. To trade the bearish view effectively use the $4.67 area to initiate short positions as this is resistance from the 9 and 100-day moving average. A tight stop should be used on a break of these averages. A break lower leads to a target of $2.77. It should be noted given the volatility in retail meme stocks that going short is better achieved using put options to manage risk.
Tuesday has produced a bullish engulfing candle, which may halt the recent slide. Taking a long position the initial target will be the convergence of the 9 and 100-day moving avearges at $4.67 and further resistance/targets are at $5.16-$5.36 from the 21 and 50-day moving averages. The April 7 high of $6.17 will be the pivot for any bullish move. Here it may be prudent to significanlty reduce longs.
The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
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