Chart of the Week: Duolingo
Good morning everybody. Happy Wednesday. It’s time for our chart of the week, and this week we’re gonna be focusing on language learning online company called Duolingo; DUOL is the symbol. Let’s take a look at this chart. It’s looking pretty strong and looking like it’s ready to break out one more time.
As you can see here – I’m going to draw a parabola over here. You can see that the stock has made a nice series of higher highs and higher lows. This drawing all the way back from August. It was about $150 – it more than doubled to the early part of December. Came back a little bit and pulled in on a little bit lower volume, lower turnover.
This is your classic cup and handle pattern. So we’ve got the right side of the base over here carved, then we have a handle here, another right side of the base, and then another handle here, another right side of the base, and then a handle over here. You get the story here. This is what an uptrend looks like. This is a classic, textbook uptrend with higher highs and higher lows.
So, when we get a little bit more of an extended sideways movement – sideways to slightly lower movement – it tends to lead to a much more powerful upside. Which is where I think this stock is going to go, probably to about $400, maybe $420 is the next stop for Duolingo.
We noticed that the relative strength had pulled back along with the stock. And we bounced right off of there and started shooting higher last week.
Money flow has been strong, and then also we see that the MACD is on a buy signal over here.
We’ve had good volume trends as well. Notice the last couple of days volume has been real strong. And even from December on some of the up days, we had good strong volume as well.
Everything looks pretty healthy here with Duolingo. Might want to take a look here at a shot at the stock.
Again it’s going to take a little while for the stock to move. It does move pretty steadily once it gets into those uptrends. Look at this move back in September of last year. We broke out of the handle and all of a sudden just took off to the upside.
We had a couple of situations even earlier in the year. Look back in August – the same thing. Once it got above that break level, it really took off to the upside.
Take a look at Duolingo. Thanks – that’s it for today. Have a great day everyone and I’ll see you next time.
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