But stocks broadly are under pressure on Wednesday, thanks to a hot CPI reading, triggering inflation concern.
As for FuboTV, the shares are up nicely on the day, but are well off the highs when the stock was up 21%.
The rally comes after the shares broke to 2021 lows on Tuesday, before reversing and closing about 8% higher on the day.
After the wild moves, let’s look at the charts for FuboTV.
Trading FuboTV Stock
The move may not look like much on the daily chart above, but the fact of the matter is FuboTV stock is up 32% from Tuesday’s low. At today’s high, the shares were up almost 50%.
That creates a bit of conflict for traders. As traders, our top priority is risk management.
While it may be tempting to focus on the possible reward of a stock that’s still down 70% from its highs, we have to protect our risk flank, too.
Generally in a situation where we have a reversal, we’d wait for FuboTV stock to reclaim Monday’s low (which was $16.28), then use Tuesday’s low at $14.64 as our stop loss. While the stock did just that, earnings complicated the situation.
That low — often referred to as a pivot — is our reference point. Below that and many bulls would no longer want to be long. With $1.64 a share in risk, it’s manageable.
However, currently with about $5 per share in risk on a sub-$20 stock, it’s a much harder situation -- though we can simply reduce our position size to account for the wider risk range.
Regardless, we need this week’s low to hold. Below that and more downside can continue.
On the upside, let’s see if FuboTV can hold above $20.40. That keeps it above the 10-day and 21-day moving averages, but also above last week’s high.
That gives us a weekly-up rotation and opens the door to the $23 to $24 range. Above that and $26 is possible.