As one of the most interesting firms to go public in the past 18 months, ContextLogic (NASDAQ: WISH) has captured the attention of ordinary stock trading individuals and market experts, who are divided on the company’s prospects.
At the end of the market close on Monday, WISH closed, trading at $5.02 -0.02 (-0.40%) down on the day. In fact, WISH is presently trading towards the lower end of its 52-week trading range, which is not a promising sign for the stock, especially since the S&P 500 Index is now trading around its 52-week highs.
Notably, the firm’s shares are trading below its 20, 50, and 200-day simple moving average (SMA). Thus, given its recent performance and a price below the three SMA lines, the stock is exhibiting signs of bearish momentum.
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WISH resistance levels
Furthermore, in terms of resistance, we can identify a significant resistance area, a zone spanning from $5.03 to $5.19, that is created by a combination of several trend lines and key moving averages in different time periods.
Over the past month, WISH has been trading in a broad range of $4.61 – $6.30, which is quite wide. Currently, it’s trading around the lows of its recent range.
As a result, the stock does not yet offer a high-quality setup. The price movement has been a touch too volatile to identify a suitable entry and exit position at the current time. Therefore, it is generally best to hold off until there has been some consolidation first as the short-term trend, as well as the long-term trend, both appear to be negative.
Wall Street analysts predict
Nevertheless, ten Wall Street stock trading analysts have provided 12-month price estimates for WISH over the past three months. In general, a median price goal of $9.06 is expected, with a high prediction of $19 and a low projection of $4 forecasted. Therefore, the average price objective indicates an 80.48% increase over the stock’s most recent trading price of $5.02.
Furthermore, over the last three months, the ten TipRanks experts have given their stock ratings. Interestingly, there are two ‘Buy’ recommendations for WISH, while five analysts have advised ‘Hold.’ It’s also worth noting that three analysts recommended ‘Sell.’
As a result, most experts believe that ContextLogic is a ‘Hold’, despite a projected rise of 80.48% from its most recent price.
Wish stock outlook
It’s worth mentioning that some analysts cautioned investors that momentum for WISH stock was dwindling ahead of the company’s first initial public offering (IPO). Indeed, now the firm, which was previously valued at more than $31 and is now worth just a few cents more than $5 at the time of writing.
However, worldwide outbreaks of new coronavirus strains caused disruptions in supply networks such as WISH, which was already suffering from the virus’s effects.
Due to supply chain problems in China, the business was obliged to reduce its advertising budget to adapt to a reduction in transaction volume and cope with increasing logistical expenses.
Positively, ProductBoost advertising-income, on the other hand, rose 11% year on year to $50 million and increased 126% year on year to $228 million, as per the firm’s Q2 2021 results.
Finally, it is possible that WISH stock is oversold since ContextLogic’s revenue and active users continue to increase every year. Ultimately, when the Christmas shopping season arrives, it may better indicate where the stock is headed since Q4 is the busiest quarter for e-commerce companies.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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