Here’s what I’m looking for tomorrow in Avalara ($AVLR) (February 12, 2020)AVLR
I want to look at Avalara ( NYSE: AVLR ) here. I have had these lines here for a while; I drew them because they were kind of my hypothesis of what I thought the stock might be doing. I started them on, I think it was the 5th, right around here or something.
My sense was this is a stock that it sure is looking to me like it is kind of a little sloppy one but a little bit of a cup and then it could be a handle, certainly, one up there. And so I thought, what if the stock just kind of trades sideways for a while, is that a good thing or a bad thing? I thought it could be a good thing because it would just kind of cause the price action to tighten up a little more and then give it more of a support on any kind of a breakout.
Well, after hours today, the company reported earnings and they actually posted an earnings loss but that wasn’t a surprise but they beat on revenues. And so if you look at the way the stock has traded, it hasn’t traded very much at all. This is not a super popular stock as far as trading.
But the way the market has been going I think this is a stock that bears watching because while it is trading down a little bit and if it continues to trade low tomorrow stay away from it. I am not saying buy the dip, I am saying, watch this thing and consider maybe buying the rip. In other words, if the stock starts trading up tomorrow that could be your opportunity. The earnings are out, the stock has been up for a long time and traders like the numbers enough to still be buying the stock. So you are really buying the stock on a breakout, 93.60, something like that.
Now, I am saying you are buying the stock on the breakout, not buying the stock in anticipation of a breakout, the breakout might not come. So pay attention to that, we’ll see how it trades tomorrow and maybe we can make some money at the open.