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COUR (Long) - Impressive relative strength in a choppy market

由jurajholik提供

Fundamentals

I do not wish to dwell on fundamentals too much; I am more impressed by price performance and I am always guided by the price as I consider the collective wisdom of the market the best indicator
However, the growth of the company has still been strong, with sales consistently rising by 20% and above
Mainly though, Coursera has future - education does need to undergo a digital revolution and in this sense, the firm has a strong competitive edge. Hence, I would not discourage anyone from taking a longer-term position in the company
But this trade is focused on a more of a 6-month outlook

Technicals

As I tend to, I have been watching the price of COUR for over a month; the price has done a decent climb and has been orderly consolidating for the past month.
Despite the turmoil in the broader markets, the price has never substantially decreased
Over the past year, it has formed a robust base built on top of an immaculate double top pattern
I am also big fan of the impressive relative strength against the S&P500 which can be seen at the bottom of the chart

Trade

I have not entered the trade myself as I am still waiting for a confirmation that the trend is going to continue upwards
One could enter now at a better price, but the probability that the trade works out is lower; a clear breakout would give the idea more validity
The bottom of the consolidation range represents a clear stop-loss option
My main caveat is that I am pretty bearish on the overall market in the next 6-month window. So although the stock does not have to necessarily plummet down with the market, it will certainly complicate its upward trajectory. Hence, I would advice for some patience if you decide to go with the trade.

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