Good Morning Traders!
Our pick on Friday was MNGA. The stock held support and acted overall “reasonably well”, popping higher to the tune of about 3% in total available gains on the day. But we think this setup may be worth much more than that.
As a quick refresher, we have a lot of reasons to like this stock right now:
- MNGA has a small trading float of just 37.85M, which suggests the stock could launch higher on any additional influx of interest.
- MNGA is making real money, with trailing revs already coming in at $2.80M.
- MNGA is starting to see major topline growth, with quarterly y/y revs increasing at 43%.
- MNGA is showing a clear surge in interest, with volume over the last couple weeks tracking 34% above its recent average levels.
- MNGA is resting on key support at the 20-day and 50-day moving averages.
The action on Friday was supportive of a strong outlook here, but it’s imperative that this stock continues to hold strong support at the major moving averages for the bull signal from the MACD to really rear up and catapult this thing up to target-1, which we would see as a retest of the recent pivot around the $0.75 area.
That move would be something like 15% as a minimal expectation if support continues to go to work.
Seeing as how our last two Nazzy plays went for an average of about 35%, we don’t think this is asking for too much!
It’s Stocktoberfest, guys! Get your game face on.