Clover health investment. Technical & Fundamental analysis and possible upcoming Catalysts.

ALL the credit goes to CHARTXZY here is the link to his profil and original Analysis.

Clover health has quite the catalysts not only fundamentally, but technically as well.

Technicals: CLOV has been in a downtrend since early January, with an all time high near $17.00, and all time low of near $6.00. Quite the range. Fibonacci retracement levels can give us approximate levels of support and resistance once a breakout occurs. As you can see, the daily chart here shows a SLIGHT breakout (See B2) above the downtrend, as also seen in April (See B1). Another green candle above the downward trendline would give me further confidence of a breakout towards first $10.50, and then $11.86 following, the retracement levels act as price zones of support and resistance for my trading style.

More on technical setup, we have a nice MACD convergence on the 1D chart, forming a nice consolidation for a breakout within the MACD , where I see a bullish reversal that can last long term.

Fundamentals: Not going to lecture you on the company, but rather give you some interesting catalysts and factors that will most definitely play into the price.

  1. Short interest is over 50% of the float, which to me, gives a lot of potential for a true squeeze, higher than GME and AMC .

  2. Because CLOV is a SPAC, insider shares have a lockup as well as a predetermined price that the stock MUST be trading at for 90 consecutive days before insiders can sell. that price is $30 a share. Meaning if they want to sell their shares, price has to be $30 for atleast 90 days.

  3. Short positions are in trouble near the $11 level, meaning above $11, nearly 100% of all short positions are in the red, and losing money.

  4. Shares available to be shorted as of yesterday was only 600,000.

EDIT: The above borrowing numbers are from the day the analysis was done, date can be found in the link.

With squeeze potential like this, such a large short percent of the float, and company insiders not being able to sell until $30 a share, expect nothing less of parabolic movement, but the real question is WHEN. Timing this will be a difficult thing to do, but I will be playing this with long term leap options as well as shares for accumulation.

EDIT: IMPORTANT, once CLOV gets over 11$ , it doesn’t mean that they will rush to cover right away , BUT they will be loosing money, the higher it goes the more they lose , and eventually The will will cover .

EDIT: It will be included on the Russel 2000 index on the 25th June, thanks for reminding in the comments.

This post isn’t meant as a financial advice, shouldn’t be taken as such. Just important information.

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