The stock is enjoying strong momentum after the company acquired "exclusive streaming rights to the 2022 World Cup qualifying matches for South America."
However, it’s not the first time that Fubo finds itself in the spotlight. The stock has been a rollercoaster ride over the last few quarters.
In October, shares gave bulls a spurt of life before going on a rip-roaring rally in December. After roughly tripling in about two months, the stock more than doubled in just a few days, ultimately topping out near $62.
Then it became a hot debate, as short reports, hedge funds and analysts argued over its future.
As Fubo went up in popularity, so too did its volatility. We’ve seen multiple rises and falls of 50% or more since the stock topped out in December. Can it piece together another rally now?
Clearly there is momentum in streaming video. We’ve seen it in Roku (ROKU) - Get Roku Inc. Report, as well as Disney (DIS) - Get The Walt Disney Company Report and Netflix (NFLX) - Get Netflix Inc. Report.
Disney recently topped 100 million Disney+ subscribers, while Netflix continues to trade well after inking a new deal with Sony Pictures (SONY) - Get Sony Corp. Report. So it stands to reason that Fubo may also find some momentum as well.
Before Friday’s open, I was looking at the pre-market strength in Fubo, hoping for a strong day but not expecting so much strength in the session.
Currently, shares are working on clearing the 10-month moving average and giving bulls a weekly-up rotation over last week's high at $24.01. Above these marks opens the door to more upside.
Specifically, it puts $26.50 in play - the 21-day moving average - followed by the 10-week moving average just below $30.
Above $30 opens the door to the 21-week moving average near $33. Fubo has a high short interest too, so if it starts to catch on fire, it can piece together a rapid rally and squeeze higher.
On the downside, the risk is fairly wide from current levels. However, a move below $20.25 and the 50-week moving average would be quite destructive.
The stock has bounced from this area over the past three weeks, so to lose it would really sap a lot of Fubo's momentum.