yesterday broke out of its resistance at $1,000/share and closed above it. This is a noticeable and rare feat. The quality of the fundamentals/growth and the strength of the momentum on this stock are such that there should be few remaining short sellers (1.2% of free float) at the current stratospheric heights. While many would argue that “the valuation is stretched by any measure” which is undeniable, I would argue that this should not keep this asset from going higher. Anticipate the run to continue from here, for technical reasons at least.
Target +5% upside in the visible term
Buy the breakout at the market in half position
Staggered stop-losses at 980 (-2.3%) and 960 (-4.3%)
Blended reward-to-risk = 1.5x on the basis of a 5% target, more if the current run continues