Given the demonstrations for justice and the humanity of Black lives, stocks of Black owned businesses have now caught the eyes of traders recently. I had a client turn my attention to Urban One ($UONE) a couple of weeks ago.
While I’m familiar with the company and its founder, Cathy Hughes, I didn’t know that it was publicly traded company. After spending some time doing the fundamental analysis, it is my opinion that the company is well managed and could get a lift in revenues with all this new consciousness coupled with the political ad buying season ramping up. Satisfied with my fundamental analysis, I took a look at the chart.
While trading under $10 for nearly 14 years, the stock exploded to new 52-week highs on June 16th. Traders piled in not long after taking profits to push the stock to new all-time highs on June 19th – Juneteenth, naturally. Traders quickly took profits again at the $54.16 high. Despite breaking below the 61.8% Fibonacci retracement level, which signals a reversal back to lows, price still managed to settle above the $18.10 support level. As long as price can remain above support, $UONE can move higher. But a break below the $18.10 support level can see price quickly fall lower to the support zone at $10.21-11.25.
Now rumor has it that price could explode higher again tomorrow on July 7th. Why? July 7th is Blackout Day 2020.
If you are interested in learning how to do fundamental analysis and find levels in your trading, please check out the CHARTS101 course. Read the charts for yourself so you can trade what you see and not what I think.