Confluent
The software spider web
Confluent is a software company that I have followed and traded some since it’s IPO. It’s a software company providing datastreaming platforms making customers data seamlessly and confluently connect to eachother. Very complicated, lets talk about the stock.
Strong sector
Growth about 25% YoY and very strong financials
Blue-chip customers like Netflix, Walmart, JP-morgan
Three year long IPO-base
The longer the base the more powerful of a move a stock can make when it finally breaks out. Bases are the institutions way of accumulating stocks without propelling the shareprice high. Richard D. Wyckoff described the institutions as the Composite Operator. Buying stocks low then pausing making the stock decline in price, then buying again. This is what produces a trading range in stocks when they oscillate between the high and the low of the range. What I focus on is finding the timing when institutions have accumulated enough stocks making the stock break out. There are always signs in the chart.
Confluent recently made an impressive power earnings gap with a weekly volume of 3x average. Volume must always confirm the price. Volume profile shows that there is very little trading of stocks above this range, thus when it breaks out there will be an ease of stride. 170% to ATH. Monitoring it closely for a decisive breakout and confirmed uptrend. Daily and weekly charts.
Charts from TrendSpider
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