Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Is Global-E Online Setting Up for a Breakout?

A down-channel chart pattern has formed in the chart of Global-e Online Ltd. (GLBE). This occurs through a combination of a trend line support that runs parallel to a trend line resistance. If the stock breaks through its resistance, a breakout is expected. Read more to learn how to take advantage of this trade. 

Global-e Online Ltd. (GLBE) provides e-commerce solutions. It offers a platform to enable and accelerate global, direct-to-consumer cross-border e-commerce. The platform was purpose-built for international shoppers to buy seamlessly online and for merchants to sell from, and to, anywhere in the world.

GLBE is a fairly recent IPO that essentially simplifies cross-border commerce by supporting multiple languages and currencies. In fact, the company has a first-mover advantage in a market with massive opportunity. So far, the firm has shown robust performance as management raised its full-year guidance.

As of the end of the second quarter the company had $488 million in cash, which compares favorably to only $3 million in cash. From a growth standpoint, things look up as analysts expect earnings to jump 185.7% next year.

However, the stock looks overvalued with a high price to sales ratio of 50.8. This is much higher than the industry average of 3.6 and the S&P 500’s 3.2. GLBE has been trending down since September as shown in the chart below.

Take a look at the 6-month chart of GLBE below with my added notations:

Chart of GLBE provided by TradingView

GLBE has formed a down-channel chart pattern over the past two months. A channel is formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to channels, any (3) points can start the pattern, but it truly takes a 4th or more to confirm it.

Click Here to Read the Greatest Trading Book Ever Written

A long opportunity in GLBE could be entered on a breakout of the channel resistance. A short trade could be entered if the channel support is broken.

Want to Discover More Great Trades?

What is better than finding the 1 attractive stock in this article?

Discovering 5 timely trades...like the ones in this new special report. Click below to claim your free copy now!

5 Stocks Ready to BREAKOUT!


GLBE shares were trading at $64.06 per share on Friday morning, down $2.32 (-3.50%). Year-to-date, GLBE has gained 151.22%, versus a 22.65% rise in the benchmark S&P 500 index during the same period.



About the Author: Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.

More...

The post Is Global-E Online Setting Up for a Breakout? appeared first on StockNews.com
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.