Here’s what I want to see on Sea Limited ($SE) (July 29, 2020)


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This is Scott with your Free Chart of the Day. I want to take a look at Sea Limited ( NYSE: SE ) and show you what I want to see on Sea ( NYSE: SE ), pun intended.

Sea Limited ( NYSE: SE ) has had just a heck of a run here. Coming off of the 50-day moving average in the middle of April the stock is up almost 170 percent and that is an amazing run. Since July the 8th the stock has just been consolidating this move to the upside. We like this because this shows that institutions are stepping in to support this stock at these levels.

If the stock had come up and then kind of flushed down a little bit then they are not coming in to support the stock but every time the stock kind of dips around this middle Bollinger Band or the 21-day exponential period moving average. There is support for this stock, there are buyers coming and supporting this, so that is what we like to see. Now, ideally this stock kind of goes sideways for maybe another week or so. Kind of a high base of consolidation up here around the 118.00, 115.00 level.

Now, as it is doing this I want to continue to see the volume drop off. We want a little complacency to come into this stock as it does consolidate here going sideways, maybe a day where we come down back to the 8-day exponential period average; then a little bit of an up day, a little bit of a down day. Again, just building that base of consolidation at these levels while we wait for the 50-day moving average, the red line here, to catch up to the stock.

If we do see that in this chart I think we will have a decent level to define our risk off of if we see a continued move to the upside above 120.55. Now, that’s the level I have an alert here on this stock. I do have a small position that I bought down here just under the 8 exponential period moving average. I want to add to that position but I am only going to do it if we do break above that 120.55 level.

So like I said, Ideally, we would consolidate a little more sideways here. But, obviously, we don’t get to pick what the stock does, so I do have an alert here at 120.55. We got rejected just under that level today so it is still, as it stands, a level of resistance, which, again, tells me that we could see further consolidation.

I want you to keep this one on a watch list and maybe have an alert at 120.55. That is just about $0.10 above this price rejection here. And if we get a move above that level on volume I think this could continue its nice run to the upside. The stock does have earnings coming up on August the 18th so we will see what happens leading up to them.

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