JOYY Inc. : Perfect timing to aim a technical rebound
By Pierre Gilles de la Londe
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$65.68 | $0 | $62.6 | -100% |
In the recent months, earnings estimates for the next year are regularly revised upward by analysts. With an EPS estimated at 2.66 USD for this year and 3.7 USD for the next year, YY is currently paid 24.6 times its earnings whereas its average industry is about 37.25.
Currently the stock is oversold upon contact with an upward trendline which could support an upcoming rise. This support is a trading opportunity in order to anticipate a technical rebound towards USD 71.65 and by extension towards USD 79.5. Moreover, shares have just crossed the short term pivot point which could boost the upward movement.
Therefore, the proximity of the trendline support is an opportunity to go long on YY. The first goal is a return in the USD 71.65 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the upward trendline.