Hi everyone! Today we’ll be looking at a former “meme” stock:
Corsair Gaming, Inc. (NASDAQ: CRSR)
A look at the monthly chart shows a flag pattern with higher lows and lower highs, with the higher low confirmed on RSI as well. The most interesting development on CRSR is the breakout above the flag that we noticed in December last year.
A look at CRSR on the daily suggests that this is the 7th time (in general) that the stock has tested the upper trendline, and it has finally broken out on this attempt.
More recent price action shows that accumulation has been taking place on the way down, to, and on the way up from 11.45 with significant buying pressure around 11.45 indicative of a potential double bottom setup as well.
The breakout of the falling resistance trendline led to rejection at 15.07, but has found support at the confluence of support at 13.43 (prior support) as well as above the falling resistance trendline suggesting an R/S flip is taking place. Moreover, the stock is respecting higher lows and higher highs on this move up, with hidden bullish divergence also forming on the backtest of 13.43.
Recent accumulation patterns suggest a move higher, at least back to 15.66, where CRSR rejected before moving lower previously.
If you’re patient enough, this is a potential multi-bagger in the long-term.
Sentiment: BUY
Summary (with Price Targets - NFA):
Broke out of a flag consolidation and double bottom pattern around the same time, with a shorter-term measured move to 20.72 (May’23 high) to complete the double bottom setup and a longer-term measured move to 42.97 (Jun’21 high) to fill imbalances
Accumulation has been taking place both on the way down to, and on the way up from, the 11.45 level where there was significant volume indicative of stopping volume
CRSR is a slow mover, so it might be a better play with shares over options, unless you buy leap contracts with appropriate strikes
Alright, that’s all for this article - see you in the market later :)
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