To The Moon

Here are the Top 3 Gap Up stocks from 01 Dec 2023, they have a significant price change for the trading session, in this article I would like to do an assessment using technical indicators to see if the Top 2 stocks have potential of higher upside today (04 Dec 2023).

$Elastic N.V.(ESTC)$

On Friday (01 Dec), ESTC filed its 10-Q report, revealing a mix of financial challenges and growth prospects. The company's revenue for the six months ended 31 Oct 2023, stood at $604.4 million, a notable increase from $514.5 million in the same period of 2022

ESTC demonstrates a strong subscription model and technological innovation as its core strengths, which are essential for sustaining growth in the competitive tech industry.

But we need to be aware of its operating losses and reliance on third-party cloud providers, I am looking forward to see some strategic planning on how to overcome these challenges. ESTC do have promising opportunities for expansion in cloud offerings and international markets but ESTC need to overcome the economic uncertainties and intense competition with a sound strategy in order to capitalize on these prospects.

50-day Moving Average

ESTC did have a nice surge on 01 Dec 2023 after it filed its 10-Q, but challenges remain which might bring them back to reality.

I do foresee there is still some opportunity for a short upside, but once pullback comes in, we might experience a Gap Down.

I will take a “wait and see” approach by observing the price action before planning any move.

Average Directional Index (ADX)

ADX is showing to be below 20 indicating a weak trend, this could be true because of the challenges ESTC are facing, a strong subscription model does not necessarily help to keep the share price high.

+DI is above -DI suggesting a bullish upside, this might be due to the surge and high percentage change during trading.

Relative Strength Index (RSI)

RSI is in the overbought region which could mean traders and investors are still into LONG position and buying activities might still persists.

I would not say that there is a potential bullish uptrend, but I will watch the price action.

$UiPath(PATH)$

PATH has released a better-than-expected report for the third quarter of fiscal 2024 (ended 31 Oct., this prompted the share price to surge by 26.7% on Friday (01 Dec).

They have also released a Q4 revenue guidance, which was slightly stronger than analysts had expected, this is also another catalyst to provide tailwind for the stock.

50-day Moving Average

PATH is already trading above the 50-day period before its stellar earning release, and now with the share price rally on 01 Dec, I believe there is a chance that PATH might continue to be trading above the 50-day moving average.

Their next quarter guidance also provide some insights that they are expecting sales and revenues to do better for the last quarter of 2023. I will be taking a closer look at how the price action moved today 904 Dec).

Average Directional Index (ADX)

ADX is trending upwards even though it is between 20 and 40 now indicating a developing trend, +DI is above -DI suggesting a bullish upside.

With the stellar earnings and demand for more automation software with AI revolution, I believe PATH has more potential of making it.

Relative Strength Index (RSI)

RSI is well into overbought region and this shows that traders and investors are still positive on this stock, we should be seeing some significant buying volume.

But we might not know what will happen, so I will stay cautious and monitor the price action.

Summary

Based on the 2 stocks I shared, I would think PATH has a better potential to make a long term upside, ESTC will need to come up with a good strategy of how to overcome their challenges, because this might swayed investors sentiment before its next earnings.

I will monitor these 2 stocks and see if there is any potential to gather a short trade.

Appreciate if you could share your thoughts in the comment section which stocks do you think have better potential to have a nice upside today (04 Dec).

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.