I like the Fresh Base on Freshpet $FRPT – April 2, 2024
This is Scott at StockMarketMentor.com and your Chart of the Day. I want to take a look at Freshpet ( NASDAQ: FRPT ).
As you can see here in late February, Freshpet ( NASDAQ: FRPT ) had earnings, and the market liked it. There was a 300 percent surprise on their earnings, that sent the stock up and it has been holding that gap, which is good to see. You will want to see stocks gap up after earnings, that would be ideal.
But the most important thing, in my opinion, is being able to hold that gap to the upside. As long as this earnings gap doesn’t fill to the downside, then, ideally, the stock will remain in a strong uptrend. So that’s one signal to look for as you are scanning through charts.
If I zoom in here a little bit we can see that Freshpet ( NASDAQ: FRPT ) has been holding up in and around this orange line, which is the 8-day exponential period moving average. In fact, it has rarely closed under the 8-day since the end of February, since the earnings report.
That tells me there’s a constant bid in this stock, and fund managers, and whoever, retail traders are probably just trying to get some exposure here as a potential next positive earnings play, which doesn’t happen until the end of April.
I see a nice fresh base being built here on Freshpet ( NASDAQ: FRPT ) when what I want to see as a swing trader is a move above 117.00. You can see that I have a resistance level of just under 117.00 right now. I think it makes sense to watch for a strong move above 117.00, coming on higher than average volume.
Now, you could definitely get a small position, one or two shares as a placeholder, in and around the 8-day exponential. And as long as it stays within this price zone, I think you are okay. But in terms of adding to a position and swinging long, I think you’ll want to wait for that strong move through 117.00, here on Freshpet ( NASDAQ: FRPT ).
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