Should you Roll The Dice on $ATAT? – February 23, 2023ATAT
This is Scott with your Chart of the Day. I don’t like to gamble in this market in particular, but I have seen this pattern before. This is ATAT ( NASDAQ: ATAT ), Atour Lifestyle Holdings ( NASDAQ: ATAT ). It is a casino company, they have hotels and stuff like that, but this is a new issue. It launched in November/December of 2022, which is not a great time for an IPO. But it has been acting beautifully, a monster move off the low here on the IPO.
What I want to see from this chart here is a test of the highs. You can see the high of the IPOs, up at around this $30.00 range. We can just draw this beautiful downward sloping trendline from the high to today’s high. And so, while we are waiting for some economic data for tomorrow, I think that this stock has a possibility for a potential break out and retest of this high here.
So what I want to see is a strong move through this clear downward sloping trendline, coming on higher than average volume. I would probably look to take at least partial profits near the $29.00 level. Only because it had such a monster move here today. Anyone who bought the low here yesterday gets back up to the highs. That’s a 23 percent gain in just a short amount of time, which is a pretty good move, that is a year-maker for some investors.
So I would definitely look to take partial profits around that $30.00 range if it can break out and hold above that level. And then maybe see if it can make a new high above $30.00. This is one stock that I am watching into the close, into the week and we will see how it acts. This is just one of many stocks that I have on my watch list and I wanted to share it with you.Free Chart