Though this might be a risky play, since SPT is posting results in couple of days, I love what the charts are telling me at the moment.
This Chicago based firm provides social media management software for businesses.
Sprout Social has recently targeted larger companies for partnering, establishing a nice contract with Salesforce.
What am I looking now:
1. Though I mentioned that this play is a risky one, due to upcoming earnings, SPT i currently trying to break from it's Daily Cup and Handle formation.
2. Today's try was not a god try of breaking the highest point of the Cup and Handle formation, sitting at around $66.70 price level. Price did break that point at one moment, but it quickly failed to maintain above it.
3. Selling pressure was high unfortunately, there were nearly 782k shares sold once it broke through the resistance level.
4. Since I am considering this a risky play, my initial entry will be small, with stop loss possibly larger than usual. Stop loss will be sitting at around $57.39 price level, which is just below the wick of the last candle which bounced from the 50EMA.
5. Once the earnings report are published, I will either close the trade or add to the position, depending on the results posted.
As always, please do your due diligence, this is just an opinion.
This Chicago based firm provides social media management software for businesses.
Sprout Social has recently targeted larger companies for partnering, establishing a nice contract with Salesforce.
What am I looking now:
1. Though I mentioned that this play is a risky one, due to upcoming earnings, SPT i currently trying to break from it's Daily Cup and Handle formation.
2. Today's try was not a god try of breaking the highest point of the Cup and Handle formation, sitting at around $66.70 price level. Price did break that point at one moment, but it quickly failed to maintain above it.
3. Selling pressure was high unfortunately, there were nearly 782k shares sold once it broke through the resistance level.
4. Since I am considering this a risky play, my initial entry will be small, with stop loss possibly larger than usual. Stop loss will be sitting at around $57.39 price level, which is just below the wick of the last candle which bounced from the 50EMA.
5. Once the earnings report are published, I will either close the trade or add to the position, depending on the results posted.
As always, please do your due diligence, this is just an opinion.