I use technical analysis with a little bit of fundamental analysis when evaluating a stock, plus I like to check for recent insider activity. I see nothing good going on with this stock. It looks like the stock went public just under a year ago, and has been in a downtrend the whole time. ROOT announced earnings a few days ago, and dropped from just under $7 to a little over $5. It has been losing money, and losses have been accelerating. It has only been two days since the all time low.
The last two days have been up a little, so it might be at a turning point but I expect the improvement over the last two days is short covering. The chart has way too many solid red candles for my taste. I never try to catch a falling knife.
|