After being hit by a short-seller report published by Hindenburg Research on 02/04/2021, we saw $CLOV share price declining steadily up till the current value of $10.98 as of closing price Friday. Clover Health Investments Corp is a company that operates as a Medicare Advantage insurer in the United States by providing preferred provider organization and health maintenance organization health plans for Medicare-eligible consumers through its software platform - Clover Assistance. It is backed by Chamath Palihapitiya who has brought $CLOV public through a reverse merger with IPOC.
I believe at the current price that the share is trading at, $CLOV is an absolute bargain that is well-positioned for a recovery play with a great risk/reward ratio. I expect any dips into the $9.87 to $10.50 demand zone to be bought up rapidly by buyers who are looking to load up on $CLOV shares - which should translate to rapid bounce back of price off the demand zone. This held true on Thursday and Friday where we saw $CLOV temporarily dipping to $10.50, only to recover rapidly from that level.
I foresee $CLOV recovering steadily back to $14.10 once the negative sentiment created by the short-seller report starts fading away. The only reason why I am not putting my price target any higher than $14.10 for the time being is because I see the level between $14.13 and $17.22 to be an area of strong supply zone. However, if we are able to break above the supply zone, I believe that it is perfectly reasonable for $CLOV to be trading at shy of $20.00.
But for the time being, my target is $14.10. Please set SL based on your own risk tolerance.
This is not investment advice so please do your own due diligence!
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I believe at the current price that the share is trading at, $CLOV is an absolute bargain that is well-positioned for a recovery play with a great risk/reward ratio. I expect any dips into the $9.87 to $10.50 demand zone to be bought up rapidly by buyers who are looking to load up on $CLOV shares - which should translate to rapid bounce back of price off the demand zone. This held true on Thursday and Friday where we saw $CLOV temporarily dipping to $10.50, only to recover rapidly from that level.
I foresee $CLOV recovering steadily back to $14.10 once the negative sentiment created by the short-seller report starts fading away. The only reason why I am not putting my price target any higher than $14.10 for the time being is because I see the level between $14.13 and $17.22 to be an area of strong supply zone. However, if we are able to break above the supply zone, I believe that it is perfectly reasonable for $CLOV to be trading at shy of $20.00.
But for the time being, my target is $14.10. Please set SL based on your own risk tolerance.
This is not investment advice so please do your own due diligence!
Support this idea with likes and share your thoughts below.