Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Stocks

Capitalizing on Riot Platforms’ Potential: A Sleeper Stock Ready to Soar?

by May 21, 2024
May 21, 2024
Capitalizing on Riot Platforms’ Potential: A Sleeper Stock Ready to Soar?

If you’re not familiar, Riot Platforms (RIOT) is a leading Bitcoin mining company that generates revenue by mining and expanding its mining capacity. Its stock dropped by 30% year-to-date, despite reporting record Q1 2024 earnings earlier in the month for its Q1 2024 results.

The company is expanding its mining capacity, aiming to triple its hash rate by the end of the year. Still, given the associated costs and the recent Bitcoin halving event, which present challenges, is its growth trajectory sustainable?

In a nutshell, this summarizes the fundamental outlook: it’s a speculative stock. However, it’s a popular one whose momentum is driven by sentiment, especially in the near-term. As a swing trade, it might be worth the attempt. So let’s take a closer look.

First, A Caveat

So why Riot Platforms? It has a crappy StockCharts Technical Rank (SCTR) score, and it’s been fluctuating in a seemingly lifeless manner after having been beaten down quite significantly.

Well, the answer is that there’s a lot of buzz surrounding the stock. Sometimes, buzz precedes giant moves. Not always, naturally, but, if you are attempting to get in early, paying attention to buzzy stocks with beaten-down prices and strong technical and fundamental potential is the first step toward finding the next big stock move.

Plus, you can check Riot’s company profile using StockCharts Symbol Summary for technical and fundamental info. For example, note how RIOT’s recent earnings performance tends to outperform analyst expectations. There are more things to check, of course, but this is just a sample of the full-spectrum info you can glean from this StockCharts tool.

The Macro Picture

CHART 1. WEEKLY CHART OF RIOT AGAINST BITCOIN. Riot’s performance, driven by Bitcoin prices, is trailing well below it. A bearish sign, but can it turn around?Chart source: StockCharts.com. For educational purposes.

This image shows Riot’s past and current performance. It exploded upward in 2021, driven primarily by Bitcoin prices to which it was tightly correlated, more or less. As both assets bottomed toward the end of 2023, Bitcoin prices skyrocketed while remaining locked within a range. Ultimately, RIOT began underperforming Bitcoin for weeks; it’s currently -55% below Bitcoin’s performance.

CHART 2. DAILY CHART OF RIOT. A beaten-down stock with strong technical and fundamental prospects?Chart source: StockCharts.com. For educational purposes.

If you’re looking to take advantage of a short-term upswing, the key levels to watch center around the $12.65 price range. This resistance level has been tested on several occasions (at least) since June of 2023 (see black arrows). A breakout above this level would also clear the price range where heavy back-and-forth range trading occurred, as indicated by the Volume-By-Price indicator.

The Relative Strength Index (RSI), rising from “overbought” to just above 50, suggests that price potentially has more upside to go if momentum carries it upward. This correlates with the most recent swing low (see blue trend line), which failed to challenge its yearly low of just under $8 a share.

If the price breaks above $12.65 on strong momentum, look toward the $18.30 range as a potential selling level. This level marks a pair of significant highs and is also the average 12-month price target among several analysts.

The Takeaway

Riot Platforms is a leader in the emerging Bitcoin mining industry. Despite its struggles, the company has promising growth potential, and analysts are overall upbeat about its prospects.

More importantly, the buzz around the stock suggests it could see significant short-term gains, even if such a trade is driven more by sentiment and technical expectations. So keep an eye on the key price levels, which, given the green light, signal the opportunity to carefully capitalize on the upside (should it occur).

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

previous post
Bitcoin Blasts ABOVE 70K!
next post
These Sectors are Showing Strength as S&P 500 Soars!

Related Posts

TIME TO USE YOUR DISCRETION AS SECTOR HELPS...

July 15, 2024

Substantial Deterioration In Number of IT BUY Signals

August 8, 2024

Get Ahead of 2025 Stock Trends!

December 4, 2024

Will the S&P 500 Break 5000 by September?

July 27, 2024

Oil & Gas Equipment & Services ETF Resumes...

March 15, 2024

Market Movements Today: Investors Rejoice as Stocks Rally,...

November 26, 2024

Are ARK’s Innovation ETFs on to Something BIG?

December 7, 2024

This is the #1 Options Income Strategy You...

May 13, 2024

The Hoax of Modern Finance – Part 8:...

February 15, 2024

DP Trading Room: Use a Price Momentum Oscillator...

March 18, 2024

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • Kash Patel torches ‘conspiracy theories’ about Bondi feud amid MAGA furor over Epstein files

      July 13, 2025
    • Trump defends embattled AG Pam Bondi, says ‘nobody cares about’ Jeffrey Epstein

      July 12, 2025
    • Bondi says all charges against doctor who allegedly destroyed COVID vaccines have been dropped

      July 12, 2025
    • Meet ‘China’s man in Lima’ who jetted over to US to collect trains donated by Biden admin

      July 12, 2025
    • Inside Dan Bongino’s tense meeting with White House officials over Jeffrey Epstein fallout

      July 12, 2025
    • Could Butler happen again? Former Secret Service agents weigh in on political violence in 2025

      July 12, 2025

    Categories

    • Business (1,304)
    • Politics (6,359)
    • Stocks (904)
    • World News (460)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved