Unleashing the Potential of the Riot Platform: A Sleeper Stock Ready to Soar? | Don’t ignore this chart!

If you don’t know, Riot Platforms (RIOT) is a leading Bitcoin mining company that generates revenue through mining and expanding mining capacity. Despite reporting record first-quarter 2024 earnings earlier this month, the stock is down 30% year-to-date.

The company is expanding its mining capacity, with the goal of tripling the hash rate by the end of this year. Still, is the growth trajectory sustainable given the costs involved and the recent challenging Bitcoin halving event?

In short, it summarizes the fundamental outlook of speculative stocks. However, this is a hot item whose momentum is driven by sentiment, especially in the short term. This may be worth a try as a swing trade. So let’s take a closer look.

First, a word of caution

So why the Riot platform? The StockCharts Technical Rank (SCTR) score is poor and is fluctuating in a way that seems lifeless after a fairly significant drop.

Well, the answer is that there is a lot of buzz surrounding the stock. Sometimes buzz precedes huge movements. This isn’t always the case, but if you’re looking to get in early, pay attention to the following: a bustling stock with price collapsed and Strong technical and fundamental potential This is the first step to finding the next big stock move.

You can also check out Riot’s company profile using the StockCharts Symbol Summary. Check out the technical and basic information. For example, take a look at how RIOT’s recent earnings performance has tended to beat analyst expectations. Of course, there are more things to check, but this is just a sample of the full spectrum of information that can be gleaned from the StockCharts tool.

macro picture

Chart 1. Weekly riot chart for Bitcoin. Riot’s performance, driven by the price of Bitcoin, is lagging far behind. It’s a bearish signal, but can it turn around?Chart source: StockCharts.com. For educational purposes.

This image shows Riot’s past and present achievements. There has been an explosive rise in 2021, mainly driven by the price of Bitcoin, which is somewhat closely correlated with the price of Bitcoin. With both assets bottoming out in late 2023, the price of Bitcoin has surged while remaining stuck within a range. Ultimately, RIOT began to underperform Bitcoin for several weeks. -55% below current Bitcoin performance.

Chart 2. Daily chart of riots. A broken stock with a strong technical and fundamental outlook?Chart source: StockCharts.com. For educational purposes.

If you are looking to take advantage of a short-term uptrend, there are key levels to watch around the $12.65 price range.. This resistance level has been tested several times (at least) since June 2023 (see black arrows). Beyond this level, a price range is also cleared where significant trading occurs back and forth, as evidenced by price-by-price volume. indicator.

Relative Strength Index (RSI)is rising just above 50 in “overbought”, indicating that the price is likely to rise further if momentum picks up. This ties in with the most recent low (see blue trend line), where it failed to challenge its annual low below $8 per share.

If strong momentum pushes the price above $12.65, look at the $18.30 range as a potential sell level. This level marks a significant high for the pair and also Average 12-month price targets from multiple analysts.

takeout

Riot Platforms is a leader in the emerging Bitcoin mining industry. Despite the challenges, the company has promising growth potential and analysts are generally optimistic about the company’s prospects.

More importantly, the buzz around the stock suggests that it could see significant near-term gains, although such trades are driven more by sentiment and technical expectations. So keep an eye on key price levels. This represents an opportunity to carefully exploit the upside (if it occurs) once the green signal is given.

disclaimer: This blog is for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting with a financial professional.