You Ask, We Analyze: Is Alpine 4 Ready To Soar Again?

On Thursday evening, Benzinga asked its followers on Twitter what they’re buying at the open on Friday. From the replies Benzinga selected one ticker for technical analysis.

@ricflairtrades and @RichD76656085 are buying Alpine 4 Holdings, Inc ALPP. The former commented that they “killed earnings.”

Alpine 4 printed its third-quarter earnings results on Thursday after the closing bell. The leading operator and owner of small market businesses grew its revenue by 23% over the previous quarter, from $14.13 million to $17.39 million. Alpine 4’s assets also grew by $3.08 million for the quarter.

See Also: 28 Stocks Moving in Friday’s Pre-Market Session

The Alpine 4 Chart: Alpine 4 squeezed about 160% higher between Oct. 1 and Oct. 19 and subsequently fell 50% during the six trading days that followed. In its run-up into earnings, the stock rebounded 34% and then entered into a two-day period of consolidation on Wednesday and Thursday.

On Thursday, Alpine 4 printed a long-legged doji candlestick on the daily chart, which suggests the forces of supply and demand are equal, meaning there is indecision. Sometimes a long-legged doji candlestick suggests a trend change may be in the cards but in Alpine 4’s case the indecision was likely related to traders being undecided on how the stock would react to its earnings print.

In the premarket on Friday, Alpine 4 was trading up 2% and the volume over the past six trading days has been bullish and relatively high. When there’s a high level of volume in a stock, it indicates a high level of trader and investor interest.

Until Nov. 2, it was possible Alpine 4 was settling into a bear flat pattern on the daily chart, with the downwards pole created between Oct. 19 and Oct. 26 and the flag formed between Oct. 27 and Nov. 1. The bear flag was negated, however, when the stock recaptured the eight-day exponential moving average (EMA) on the daily chart.

Alpine 4 is now trading above both the eight-day and 21-day EMAs and on Nov. 2 the eight-day EMA crossed above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.

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• Bulls want to see sustained big bullish volume push Alpine 4 up above a resistance level at $3.86. If the stock can regain the level as support, it has room to trade up toward the $4.29 level before bumping into another resistance zone.
• Bears want to see big bearish volume enter into the stock to push it to drop Alpine 4 down below a support level at $3.43, which would cause the stock to lose support of the EMAs. Below the level Alpine 4 has support at $2.95.
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