With long term rates seemingly headed lower, it makes the run by RKT 0.00%↑ thus far make sense. But what’s left? Potentially a lot.
Plotted above is an AVWAP from RKT 0.00%↑ IPO date. We can see the multi-year base that’s been building underneath it. I want to build a position in this name if/when it breaks and holds a move above that AVWAP. As a reminder, the AVWAP from that point represents the cost basis on a price and volume basis from that first day of trading. I employed this strategy on two other names that I’ve previously written about, with strong results from both once that break occurred.
