Here’s your trade on Gitlab $GTLB – December 20, 2023
This is Scott with your Chart of the Day. I want to take a look at Gitlab ( NASDAQ: GTLB ).
Gitlab ( NASDAQ: GTLB ) was an IPO in 2021 and just launched right near the end of the year, which, as we know, was not a great year for stocks. Because it rallied for a few days and then ultimately crashed down with the rest of the market and just had a brutal 2022.
This year it has been okay and it hasn’t been too extended. But if I zoom out here you can see that Gitlab ( NASDAQ: GTLB ) has a bit of a potential inverse head and shoulders pattern; where we have one shoulder here, the head, and then maybe you could say this is another shoulder there.
And so a little bit of a pattern here broke out just late November into December. The last couple of days it has just been pulling into support here. So what I would look for on Gitlab ( NASDAQ: GTLB ), is a continuation of this pullback. I’d like to see it backtest this move completely, maybe for the rest of the year.
And then ideally, bounce off of what looks to be a potential support zone, and give you an entry off that level, to get you into 2024 with a nice clean entry close to support. So you are not chasing this entry, you’re waiting, you’re waiting, you’re waiting, and then looking for a clean bounce off of support.
Because this level, at one point, was clearly resistance, resistance back here, back here, back here, and back here, as late as the beginning of December here. So that is what I would look for, a bit of a pullback and then a bounce opportunity to give you a low-risk entry on Gitlab ( NASDAQ: GTLB ).
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