Celsius has the potential to correct deeply.

2021년 9월 17일

The last 3 times CELH has beat earnings forecasts, it rallies extremely high. At the end of 2020, it increased over 200%, this Summer it increased nearly 100%, and it looks like this time around it will increase nearly 50%.

Each time it seems to follow a simple channel as it peaks, subsequently correcting down to the 33 DMA. The stock managed to spike 34% and 39% above the DMA during the last 2 rallies, the 2 boxes (blue and red) represent what a repeat of those 2 peaks would look like, but aligning with the channel it is in, it looks like the price should top in the red circle.

There is some major RSI and volume bearish divergence taking place as well over the span of months.

The PE ratio is about 700 right now and no analysis could justify this valuation. If the price continues on this channel for a few more days and approaches $105 I'll be purchasing $85 puts for OCT15.

Be careful with this one if anyone is planning on doing the same, from what I've seen many traders end up losing money on CELH because it tends to rally further than most expect.