QuantumScape stock - is it correction time ??
Updated
so QS what a great run !! The stock started the Motive wave at 25 and reached all the way to 132.75.
This was a motive wave at its best shows us exactly what Elliot based his wave theory about - "the herd effect" - just a mass amount of investors jumping into the latest EV tech, and a fairly good one I must add which will probably be a leading company in its sector of lithium batteries so don't get me wrong the hype is fairly justified and you cannot measure exponential growth with EPS or P/E ratio - Exponential growth in innovative tech happens very very fast and it does not comply to the metric rules of the norm leaner growth.
But we are here to talk technicals so when I covered QS I said take it all the way to 85$ and run but I didn't expect the 5th stage of the motive wave to be this strong and double the third stage in length.
But the stock gave us a nice surprise and we had a beautiful run and I am NOT saying it's over but I am saying there is a lot more correction to come in Jan 2021.
In the last 2 days, we entered the first stage of the corrective wave which has 3 stages of correction, and from what the chart tells us we learn that QS will retreat all the way to the 80$ line, which is our 50% level and as it seems from volume scanners and in-depth charts the volume will pick up again and spike the stock up to above the 100$ line.
it's important to mention we are seeing a lot of bears in the last 2-3 days of trading in the EV market (excluding Tesla of course :)) -its partly justified as these stocks are all parabolically stretched and need to give some gains back and correct. because we are talking about a massive market that will change completely by 2025 -2030 - it may sound far but for the western world to make such drastic change in less than 10 years after relaying on fossil fuel for over 80 years to drive us around it is not far at all so I would say high evaluation on premature companies with the correct direction and registered patents that will innovate and change the industry is completely justified ! but we need to let the institutions and old fashion investors understand that so we can turn the bears into bulls which will drive the market further - a great example of that would be the mighty Bitcoin that is only NOW starting to become a mainstream investment for institutions that decided exposure of up to 5% BTC in the portfolio is a must.
So to sum up - if you own QS and you are in it for the SHORT term - I would advise exiting at the next highest high which will be in the upcoming days around 115-116$ and let the stock do its course to 80$ and then buy back in.
If you are in it for the long term then its all good :) don't waste time reading this - you are spot on the right stock
this is not an investment advice of any kind, just FDGT analyst team's personal opinion and we do hold a big position of QS in our company portfolio
Happy new year from FDGT and stay safe!
This was a motive wave at its best shows us exactly what Elliot based his wave theory about - "the herd effect" - just a mass amount of investors jumping into the latest EV tech, and a fairly good one I must add which will probably be a leading company in its sector of lithium batteries so don't get me wrong the hype is fairly justified and you cannot measure exponential growth with EPS or P/E ratio - Exponential growth in innovative tech happens very very fast and it does not comply to the metric rules of the norm leaner growth.
But we are here to talk technicals so when I covered QS I said take it all the way to 85$ and run but I didn't expect the 5th stage of the motive wave to be this strong and double the third stage in length.
But the stock gave us a nice surprise and we had a beautiful run and I am NOT saying it's over but I am saying there is a lot more correction to come in Jan 2021.
In the last 2 days, we entered the first stage of the corrective wave which has 3 stages of correction, and from what the chart tells us we learn that QS will retreat all the way to the 80$ line, which is our 50% level and as it seems from volume scanners and in-depth charts the volume will pick up again and spike the stock up to above the 100$ line.
it's important to mention we are seeing a lot of bears in the last 2-3 days of trading in the EV market (excluding Tesla of course :)) -its partly justified as these stocks are all parabolically stretched and need to give some gains back and correct. because we are talking about a massive market that will change completely by 2025 -2030 - it may sound far but for the western world to make such drastic change in less than 10 years after relaying on fossil fuel for over 80 years to drive us around it is not far at all so I would say high evaluation on premature companies with the correct direction and registered patents that will innovate and change the industry is completely justified ! but we need to let the institutions and old fashion investors understand that so we can turn the bears into bulls which will drive the market further - a great example of that would be the mighty Bitcoin that is only NOW starting to become a mainstream investment for institutions that decided exposure of up to 5% BTC in the portfolio is a must.
So to sum up - if you own QS and you are in it for the SHORT term - I would advise exiting at the next highest high which will be in the upcoming days around 115-116$ and let the stock do its course to 80$ and then buy back in.
If you are in it for the long term then its all good :) don't waste time reading this - you are spot on the right stock
this is not an investment advice of any kind, just FDGT analyst team's personal opinion and we do hold a big position of QS in our company portfolio
Happy new year from FDGT and stay safe!
Note
Correction as predict but more aggressive than I anticipated because of the news about the lawsuit.as it seems stock will correct from the 50$ line to the 80$ level
Trade closed: target reached
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