WISH: Danger or opportunity? How to deal with it?

Hello traders and investors! Let’s see how WISH is doing today! It is dropping sharply thanks to earnings. However, is this an opportunity or time to get out of it?

First, it is never a good idea to buy anything just because it is dropping. Some drops make sense, some don’t. Either way, in this analysis, we’ll focus on TA, not FA.

I like to buy reversals, but in this case, we must see a bullish structure first. I would never sell WISH right now, as the Risk/Reward ratio is extremely poor, and if I were shorting it, I would probably book profits now.

WISH can reverse and fly again, yes, but for now, there’s nothing telling me it will. The key point in the short-term is the pivot point at $ 7.85. If defeated, then we might see some reversal, or at least, a congestion – either way, the bearish sentiment will get weaker.


In the daily chart, it seems that it must close a candlestick above the $ 7.52, to make today’s drop as a false breakout from the previous support. Personally, I think there’s a good chance that WISH will do something like PINS, except that PINS earnings were quite good.

I see much more interesting opportunities around, and I will just stay away from WISH. If we see a clear movement, then we might trade it, but we have nothing that it is good enough to convince me. Again, there are much better stocks out there.

Let’s watch the key points mentioned in this analysis closely, as they will give us the first signs of a possible good movement in the next few days.

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Have a good weekend.