Is This The Most Wildly Bullish Chart On The NASDAQ?

The U.S. stock market in today’s times offer everything a trader would want. There are 4,000 symbols listed on the NYSE and NASDAQ and trading commissions are a thing of the past – even if Citadel Securities is scraping pennies on millions of orders – and overall, it’s undeniably a good thing. Nevertheless, making money in stocks is difficult, particularly, as a trader. It is important to remember, however, that somewhat counterintuitively, the stock trading game never really changes despite the evolution of the markets. 

Stock prices go up and down and traders want to buy strong stocks and sell weak stocks – all the while adhering to risk management and money management principles while they do it. The below idea is for aggressive traders that have no problem swinging some risk and agree that up/down, red/green – price action – is the most important factor in speculation. 

Norwegian software company Opera Ltd OPRA seems to be absolutely cooking. It might seem like a scary chart to buy to technical traders, but frequently that is where the big money is made on a speculative basis – but it’s crucial to always use stops and have a predefined risk level before entering trades. Opera has a global footprint in desktop and mobile browsing. 

Given the nature of its business -- software is as elegant as it gets due to its low capital requirements, low cost of servicing additional customers, and its potential for acquiring a global user base quickly – this stock’s valuation does not yet appear exorbitant at 5x sales. 

It may seem to some that competition questions linger, and creating a sustainable, long-term software platform is something of a money-printing Holy Grail, and therefore, unlikely. Opera, however, has proven that it can make money, and its sales trajectory for fiscal 2021 and 2022 has been compelling. Add in the tremendous bull market in this sector and the stock continues to appear attractive despite a massive run-up in 2023. At Thursday’s close, the exact figure was 188% year-to-date. 

The company was taken public in 2018, and the stock had been trading in a volatile range ever since. Three separate times in its trading history, OPRA topped out in the $14.00 range. What has transpired since, in 2023, has been fairly remarkable as OPRA went from making a new all-time low in October 2022 at just above $4.00 to now taking out all-time highs to begin June 2023. The rally in the name has certainly been aggressive. 

The move from $4.00 to over $17.00 has been almost straight up, with even tiny pullbacks being bought aggressively. Throughout the month of May, OPRA seems to have gone parabolic as it moved through those old highs in the $14.00 area. 

This is a foreign company with a $1.55 billion market cap and it most likely is not a widely followed name. Furthermore, valuation here is somewhat subjective which opens the door for much higher prices even from here. 

On Thursday, OPRA opened very strong and ended the session up nearly 10% on more aggressive accumulation. A pullback at some point seems inevitable, and common sense would dictate it could be significant. The bottom line, however, is that OPRA continues to move in a really substantial way and there is volatility here that deserves the attention of traders involved in the white-hot action in the tech and software space. 

Featured photo by Gabriel Varaljay on Unsplash.