Hey here’s the stock that everyone keeps buying

2/15/2023

Dear Trader,

With the 13D filings all rolled out and showing the book of every fund, investors have been doing their best to mimic their favorite hedgies…

I get it.

It’s like channeling your favorite celebrity or famous personality.

That’s why when I trip on the stairs, you can usually hear me yell, “Biden!”

Poor guy…

But of the countless stocks gaining attention due to institutional buys, this is one I’ve kept an eye on since last year’s IPO.

What’s the target price for these guys?

Check out Samsara, Inc. (IOT):

This isn’t the entire chart history for IOT, but it’s close enough.

Above is the daily time frame and you can see based on the Fibonacci Retracement, the share price was as high as $31.41.

That’s a long way from the low of $8.42…

Busy chart, but I’ll keep it brief.

My focus here is the stair-stepping pattern we have out of the bottom after the company nearly doubled after releasing earnings back in December of 2022 which I’ve marked with a blue flag.

Gaps like these tend not to get filled in the near term due to “episodic events”… and earnings would be one of those.

Note the green boxes.

These are the “steps” where prior Resistance turned into Support, although they’re subtle.

But the share price is now facing an important area of contention…

Why is this level key? This was the last swing high before it quickly fell to all-time lows.

$17.49 is the price to beat.

Above this, we can look to the Fibonacci levels coupled with other previous turning points…

If you’ve been reading Before the Bell, you know I tend to key in on the 61.8% retracement level.

That’s at $22.63.

Of course, if we’re going to stretch, the 78.6% level at $26.49 could be the last stop prior to resetting the trade…

But where would be the place to enter?

Checking the staircase, low teens look good… Just wait until after earnings.

Keep moving,

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.

Hey here’s the stock that everyone keeps buying

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