Review
On September 16, 2018, when ShotSpotter (SSTI) was trading at $62.81, we said the following:
“Based on the closing price of $62.81, we have the following downside targets:
$22.05”
The updated charting of the downside targets shows that SSTI managed to decline as low as the mid-range target of $28.55, as seen in the chart below.
We understand that the decline in the stock was merely coincidental. However, we do take some satisfaction in having a high level of coincidence with a surprising number of stocks that experience parabolic moves to the upside.
In the following assessment, we attempt to highlight the upside targets that most likely will experience resistance on the way back to the prior closing high of $63.12.
Upside Resistance Levels
Based on the decline from the peak at $63.12, SSTI has the following upside resistance levels:
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$46.55
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$52.18
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$57.65
Our experience is that most investors are anticipating a retest of the previous peak as their investment goal. However, in order to get to that goal, the stock price must run the gauntlet of exceeding the indicated upside targets. Each of the levels indicated are critical resistance levels that should see a material decline in the stock price. Exceeding each level lends support to the stock price going to the next level.
A reassessment of the technicals is provided upon request if the stock exceeds $63.12.