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

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.


Follow me for more analysis & Feel free to ask any questions you have, I am happy to help

If you like my content, Please leave a like, comment or a donation, it motivates me to keep producing ideas, thank you :)


basebreakoutChart PatternsDouble BottomeducationTechnical IndicatorspricepriceactionTechnical AnalysisTrend Analysis

Also on:

Disclaimer