ContextLogic (WISH) Stock News and Forecast: A WISH upon a star as stock aims for the moon

FX
  • WISH stock is a new retail favourite and popped back up on Monday.
  • The stock had languished last week but Monday sees 18% rally.
  • WISH stock still short of early June frenzy.

I wish I had seen this one coming, there are just too many easy puns with this one but the stock did help those traders wishing for higher prices on Monday. An 18% gain is not to be wished away, ok stop it now, please. But an impressive performance possibly helped by Bitcoin woes as the meme stock space saw some interest and investment transfer across.  

WISH is an online shopping platform that aims to allow merchants to show their goods to customers based on customer’s interests and preferences. Essentially users are allowed to discover products and shop accordingly. 

Context Logic (WISH) key statistics

Market Cap $8.4 billion
Enterprise Value $8 billion
Price/Earnings (P/E) -3.3

Price/Book

6
Price/Sales 2.6
Gross Margin  
Net Margin  
EBITDA -$600 million
Average analyst rating and price target Buy $18.44

WISH stock forecast

The large price surge in WISH stock back on June 9 quickly gave up a lot of its gains but interestingly held the 9 and 21-day moving averages. These moving averages are talked off a lot and they do show the underlying short-term trend so holding them indicated WISH was not yet ready to turn negative. What followed was a consolidation phase before the shares took off again on Monday. The first resistance is the June 9 high at $15 closely followed by the previous $15.45 high from late April. Breaking the latter $15.45 resistance brings WISH shares into a very thin volume area meaning resistance is not too strong and the shares could move to $20.11. Breaking $15.45 also ends the series of lower highs since February.

The risk-reward is relatively neutral though as the momentum oscillators are close to overbought territory. The Relative Strength Index (RSI) and the Commodity Channel Index (CCI) are not yet in overbought regions but are very close. Buying a $16 call option would enable traders to reap profits if WISH shares break the $15.45 level and accelerate. Volatility in WISH has spiked given it is a meme name and the 18% move on Monday so buying call options is expensive. A call spread buying a near strike and selling a higher one reduces the cost of buying calls but does limit profit potential.


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