This market is wild.
If you are having fun trading these sharp swings, more power to you.
It takes a brave man to go in and out in this volatile market.
I prefer to spot the trends and jump in and ride them. Yes, even in all this volatility they are still playing out.
And my go-to analysis for these key trend changes is my Bank it or Tank It analysis.
Today, I have a new stock to run through my analysis and see whether or not we want to bank on it going higher, or the stock is set to tank and head lower.
Let’s dive in…
Time to Bail on GoDaddy?
This stock was actually a Twitter mention that I took a brief dive into.
Now I want to officially add GoDaddy (NYSE: GDDY) to my Bank It or Tank It list today.
The company is a website giant, known for its domain names but having expanded into a full blown platform for creating and hosting websites.
Going back to its IPO in 2015, the stock had a strong run through 2018. Then it flatlined. Since 2018, it’s seen a lot of volatility, but has failed to establish a new uptrend.
Today, we’ll take a quick look at the price action and see what it tells us to expect next.
Here’s the chart of GoDaddy over the past two and a half years.
GoDaddy Stuck in a Price Channel
The two key levels to watch are the red resistance across the falling tops and green support across the declining bottoms.
I added another one in orange, showing the current upswing the stock is on.
This market volatility continues to hit stocks on both sides of the swings. Shares fall rapidly, then see the nice bounce. Now we want to see how things settle.
And that’s where our key levels come into play.
This stock will continue to bounce around inside this price channel, but one thing is clear – this channel is declining.
Due to that simple fact, I’m putting GoDaddy on my Tank It list today.
That doesn’t mean you should run out and short the stock. It’s headed higher right now, so no need to fight that upswing.
Instead, I’ll use that orange line as an opportunity to add a bearish trade on the stock. And when it breaks the red or green levels on the chart, I’ll take more action.
For now, we’ll wait patiently.
This is why I set up a Flash Alerts system. For those of you in it, we’ll add GoDaddy to the list of stocks we trade.
I’ll monitor the stock, add key levels that develop from here, and let you know when we get a new trade setup for GoDaddy.
If you’d like to be on the Flash Alerts list, there’s no better time than right now.
I’m tossing in two special reports today for free! 10 Stocks Going Bankrupt and 10 Stocks Going to the Moon.
Plus, you’ll get my Bear Market “Guide to Thrive” Inflation Edition report if you haven’t seen it already.
All told that’s three reports, a full year worth of trade alerts based on my Bank It or Tank It analysis, weekly guidance and portfolio updates and more.
Regards,
Chad Shoop, CMT
Editor, Bank It or Tank It ELITE