This stock, $BSP , is getting interesting. Bending Spoons SpA, the Italian company that specializes in acquiring established apps, was in the news recently after its share price surged 23%. $BSP is now at 37.99, down 8.26% in 24 hours. It peaked at 41.7 before getting knocked back to 36.43, with trading volume of 10.3M.
Put simply, it had risen too fast, and investors are taking profits. That 23% rally came as the market reassessed its valuation and decided it was undervalued. This pullback looks like a normal rotation of positions, not a collapse in fundamentals. Cedar Grove's Q3 portfolio adjustment also falls within this window, so institutions may have trimmed their positions near the highs, spooking retail investors in the process.
The key level to watch is the 36.4–36.5 range. Today's low was 36.43, making this a short-term support zone. If it holds, this is just a shakeout; if it breaks, the next level to watch is around 35. Resistance is at 41.7. If it fails to break through on a second attempt, be wary of a potential double top.
I'm leaning bullish, but I wouldn't chase it here. I'd wait for it to retest around 36.5, with volume tapering off and the price stabilizing, before considering an entry. I'd place a stop-loss below 35.8. The people who chased the rally must be feeling pretty rough right now...
Put simply, it had risen too fast, and investors are taking profits. That 23% rally came as the market reassessed its valuation and decided it was undervalued. This pullback looks like a normal rotation of positions, not a collapse in fundamentals. Cedar Grove's Q3 portfolio adjustment also falls within this window, so institutions may have trimmed their positions near the highs, spooking retail investors in the process.
The key level to watch is the 36.4–36.5 range. Today's low was 36.43, making this a short-term support zone. If it holds, this is just a shakeout; if it breaks, the next level to watch is around 35. Resistance is at 41.7. If it fails to break through on a second attempt, be wary of a potential double top.
I'm leaning bullish, but I wouldn't chase it here. I'd wait for it to retest around 36.5, with volume tapering off and the price stabilizing, before considering an entry. I'd place a stop-loss below 35.8. The people who chased the rally must be feeling pretty rough right now...