Chart of the Week: Samsara
It’s time for our chart of the week. And we’re gonna be focused in on internet cloud name called IOT. The name is Samsara. Symbol is IOT. Let’s take a look at this chart. It’s been on fire the past month, month and a half.
It bounced off of a low here at around the $42 level and has been making a series of higher highs and higher lows. That is our textbook definition of an uptrend. And it broke out just recently, actually on Friday the 14th, it broke out on heavier volume above the most recent high, which was in November, and it is following through the following Tuesday.
This is a strong stock. It’s been up several days out of the past month, month and a half. It almost looks like the chart of Meta Platforms, which is up about 20 days in a row. But this stock is showing some really good strength over the past several weeks. And again with really good volume.
Take a look at the volume trends over here. We are well above the 50 day moving average in volume, especially on the days that the stock is up.
Relative strength is overbought, but as we know, overbought does not mean sell. Overbought means pay attention, and watch what’s going on with the stock. If it offers a pullback back within this channel here, I think that that is where dip buyers will step in once again, as they have been doing since the beginning of January, to buy the dip.
The indicators are all bullish. The MACD, the relative strength, the Chaikin money flow is also bullish.
All systems go for this one. It’s about $50 right now – just under $51. I think this has got some room to move to about $70 – 75 over the next several weeks. But it’s not going to be a straight shot. It’s going to take some time and it’s going to be offering some opportunities to get in on these pullbacks.
So take a look at IOT when you get a chance.
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