COCO Stock Price Surged 15% in a Day; Will It Resume its Uptrend?

• The Vita Coco Company stock price has surged by over 92% in a year.
• Goldman Sachs has cut down the target price from $35 to $32.
• The Coco Vita Company’s future outlook on sales has increased from 10% to 13%.

After its listing, the Vita Coco company (NASDAQ: COCO) traded sideways for about a year. The stock price has been in an uptrend since the beginning of 2023 and the stock has surged by over 140% until September 2023. Subsequently, the bullish rally was halted and there was a strong selling pressure from the higher level. In the previous trading session, the COCO stock price surged by over 15% with a rise of $3.73. This occurred after the company posted its earnings report on 31 October 2023. The company reported that it has beat the estimated EPS by $0.01 per share.

The company’s outlook on future sales is positive and they have revised the view of their growth of 10% to 12%. The company is now expecting to achieve growth in a range of 13% to 15%. Goldman Sachs has revised their target price and reduced it from $35 to $32. However, the firm has still maintained its previous rating of “BUY” on COCO stock.

Synopsis of the Vita Coco Company Stock Chart

The Vita Coco Company stock has witnessed strong selling pressure from the higher levels and has formed some giant bearish candles. After a slight surge, the stock showed a massive decline. This indicates that the sellers are very aggressive and the buyers are looking less confident about the outlook. 

The COCO stock price formed an ultimate high of $33.29 on 12 September 2023,  and on the same day, the stock price declined sharply. It has formed a shooting star candlestick on the daily chart followed by another of the same candlestick. The stock price has fallen heavily and formed resistance there. The other resistance is present at the level of $27.90. The stock price has surged significantly from the lower level and formed a strong support at the level of $23.23 while the other support is present at $20.65.

A Quick Look at the Indicators

The COCO stock price is situated above both 50-day and 200-day exponential moving averages (EMAs). Before yesterday, the stock price was challenging the buyers present near the 200-day EMA and the sellers were in control of the 50-day EMA. Now, the bulls have taken control of both the EMAs in style.

The relative strength index (RSI) is curving at 55.11, this indicates that the momentum is bullish. The slope of the RSI is curving sharply upward, indicating that the bulls are gaining momentum.

Conclusion

The future outlook of the Vita Coco Company looks promising and the stock price is anticipating positive movement. The stock price has shown a great jump from the lower levels and is nearing the resistance level. If it breaks the resistance level, then we can expect the price to show some more upward movement.

Technical Level

• Resistance – $27.90 and $33.29
• Support – $23.23 and $20.65

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.