To The Moon

Phunware PHUN shares ended the last trading session 14.7% higher at $5.39. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 37.8% gain over the past four weeks.

Phunware is benefiting from strong customer retention and increased bookings particularly in the hospitality and healthcare sectors.

This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +89.6%. Revenues are expected to be $1.4 million, down 49.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Phunware, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PHUN going forward to see if this recent jump can turn into more strength down the road.

Support, Risk & Stop-loss for Phunware Inc. stock

On the downside, the stock finds support just below today's level from accumulated volume at $6.34. With no support from accumulated volume below today's level the risk is increased, as a drop below the support at $ may give a huge drop in the stock price.

This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $1.55 between high and low, or 25.29%. For the last week, the stock has had daily average volatility of 24.32%.

The Phunware Inc. stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stock may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs. Since the Phunware Inc. has been rising for 6 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

Our recommended stop-loss: $7.24 (-3.16%) (This stock has very high daily movements and this gives very high risk. The RSI14 is 92 and this increases the risk substantially. There is a buy signal from a pivot bottom found 18 days ago.)

Trading Expectations (PHUN) For The Upcoming Trading Day Of Friday 18th

For the upcoming trading day on Friday, 18th we expect Phunware Inc. to open at $7.10, and during the day (based on 14 day Average True Range), to move between $6.84 and $8.12, which gives a possible trading interval of +/-$0.640 (+/-8.55%) up or down from last closing price. If Phunware Inc. takes out the full calculated possible swing range there will be an estimated 17.10% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ $6.34, some $1.14 (15.24%) from the current price of $7.48, our system finds the risk reward attractive.

Insiders are Very Positive Buying More Shares Than They Are Selling In Phunware Inc.

In the last 100 trades there were 5.78 million shares bought and 1.72 million shares sold. The last trade was made 77 days ago by Olive Christopher D. who sold 521 shares. The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside. In some cases larger purchases can be explained by due date for stock options.

Is Phunware Inc. stock A Buy?

Phunware Inc. holds several positive signals, we find these enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development