Too much optimism in the market prior to earnings.. anyone who believe in a short squezze has already bought shares, there was no panic when the price went up over 4$.. sure enough a lot of traders will take the quick money now before it trickles down to 3$ again.. about 20% the last two weeks.. not too bad. It's just that greed eats mind too often. I like this stock and it will be great in the long run, but I don't believe in any short term price doubling. And I don't see anything super surprising in Q1, we would have heard about any substantial revenue or contract already.
Duration: The cup can extend from 1 to 6 months, sometimes longer on weekly charts. The handle can be from 1 week to many weeks and ideally completes within 1-4 weeks.
Left lip = 3.88 right, cup bottom 2.62, right lip 3.83 developed from mid Feb to mid Apr
Handle formed over 6 days down to 3.09 approx. 2/3 of the cup depth.
Breakout of handle on substantial volume over average.
Breakout of right lip and 2 closes above on substantial volume.
Textbook cup and handle.
high short interest equates to an imminent squeeze.
Depth of cup = 1.21, target 3.83+1.21=5.04. Time period approx. 2 weeks with possible 3.85-3.69 trend line/stop sweep plus overzealous greedy shorts to fuel the high volume continuation after support holds.
Current Approaching overbought condition possibly fueled by earnings ramp and short covering could extend to extremely overbought condition with an overbought buried bullish signal. (Rsi over 70 for 5 consecutive days) Some dips will occur and if the earnings call is positive all dips should be bought.
Adding fuel to this fire is the triple top breakout and reversal signal on the point and figure chart with p&f bullish target of 6.75.
Good luck as there are signals to chartists and traders that exist currently, that this should be sold which could bring inexperienced retail shorts to the party. However, should 3.85-3.69 show unbeatable those not understanding the fundamentals of the company or not seeing the long period of consolidation prior could get caught with their...shorts down, fueling the next run through May.