Transcription
Hi, this is K. Artech with Wicked Stocks, bringing you an individual stock pick in Futu Holdings, that is symbol Futu, uh, Futu Holdings, a financial services company. I didn't read a lot about them, but they are a large-cap corporation by a hair—16.12 billion. You can see here, this is courtesy of Yahoo Finance. Average daily trading volume over 2 million a day over the last 3 months.
We're going to take a look at the chart, weekly bar chart, same bar chart throughout. And uh, you can see that we are presently this week above a descending channel top that is at 11.83. This week, dropping a dollar three a week. So next week, of course, it'll be, you know, 11.08, is that right? I think I did that correct. No, no, no, yes, 11.08. I don't know why I'm not doing the math well in my head, but I think you get the gist. Dropping a dollar three a week, it's 11.83 this week. If we close above it, above 11.83, and you can throw in the 1% margin, we're comfortably above that right now at 11.294.
This is a six-month structure roughly. So, you know, my rule of thumb with the 1% violation threshold is a six-month line study and, and, and greater, a longer term than that. Uh, I like to use the 1% violation. In any event, closing above 11.83, I do see, especially with present momentum over the last month and a half, the 147.68 rising channel top now considered a one to three-month target depending on volatility. Volatility and market direction continues as it has been; we could see this by the end of March, but probably the better part of two or three months. 147.68 certainly beyond the 20% return that we like to see on stock picks.
Now, for those of you who are near-term, just know that there's trouble on the way up in the low to mid 130s. You've got 130.50 is the October low. 134.34 is a 5/8 upside Fibonacci, using the extremes on this chart—that February 21 all-time high and the more recent March 22 low. And so, 5/8 back up is 134.34. So, for three to five-week swing traders, this is a solid trade. Is it 20%? No, but it's certainly more than 10%. And so, you know, buying the market buying 11.83, dropping a dollar three next week to 11.08, that is your floor of support assuming we close the week above 11.83. And assuming that is the case, then within three to five weeks, by the end of March, I would anticipate the low to mid 130s. That could be within two or three weeks. And then, as I say, over the next two or three months, 147.68. If over the next few weeks, three to five weeks, we do not hesitate at 134.34 but close above it, we're just a few weeks away then from reaching 147.68. That 147.68 rising channel top, respectable resistance able to contain monthly, possibly quarterly, bond pressures when tested, that is an area to take all profits in my opinion because we could top out there and fall away again appreciably in the weeks and months following a test of 147.68.
Now, if we don't close above 11.83, or if we close above 11.83 this week and fall back to close below that structure over the next week or two, that is your indication to exit a long position. The market then likely to fall back to 89.12 within a few weeks, and then we could kind of fall into a consolidated framework perhaps. If we close back below 11.83, it is a no-go on the buy signal. If you're long, get out. 89.12 right around the corner, and then we'll just kind of update you then after that. But, um, you know, for right now, I like this stock with the settlement this week above 11.83, and I'm throwing in the 1% margin, let's just call it 11.294 or higher on Friday, December—sorry, February 14th. We're expecting the low to mid 130s within three to five weeks, the upper 140s and climbing 95 cents a week within two to three months. I think that pretty much rounds it out. It's all needs to be said really for this particular Wicked STS video analysis on Futu Holdings. You have a great day.