Sea May Be Sinking

1月17日

Sea was a high-flying growth stock between 2019 and 2021. But it’s been dropping since, and some traders may expect another leg to the downside.

The first pattern on today’s chart is the series of lower monthly highs since May. Those may suggest that a longer-term downtrend is resuming.

Second, prices have slipped back under the 50- and 200-day simple moving averages. That may also confirm bearishness over the longer term.

Third, the digital-media company has gapped lower following its last three earnings reports. Are fundamentals deteriorating?

Fourth, the 8-day exponential moving average (EMA) is under its 21-day EMA. That may suggest the shorter-term trend has become bearish again.

Finally, the weekly chart below shows the March 2020 low around $35.61. Prices have managed to hold support since August, but now may be at risk of breaking down. Multiple closes below this level could bring sellers back to the market.



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