Bullish On Similarweb (SMWB)
Volume tells the story
Everybody wants to have a good start to the new year and See Through Charts is no exception. Today we discuss an interesting swing trade idea that you can get into in these last two trading sessions of 2024.
Similarweb (SMWB) may sound vaguely familiar to you. They provide analytics and SEO tools that, according to their website, help you “effortlessly analyze your competitive landscape” if you are managing a website.
Analyzing their stock chart is not very difficult. There are two characteristics that jump out: the blast off from its base and, importantly, the high-volume accumulation of shares. Don’t overthink it.
Just look at all those high volume days since early November. Go ahead and count them. I’ll wait here.
The impressive thing about it is the pattern of high volume on up days and lower volume on down days. That is usually a strong indicator of further advances in the near future. Even the one high volume “down” day actually saw SMWB close above the opening price.
What we don’t see is some crazy explosive volume on one specific day or parabolic runup in price. Those are telltale signs of a top.
The holiday period has allowed for a low volume consolidation after a fresh set of new highs the week before Christmas. We expect the uptrend to resume once things get back to full speed after the start of the new year. There may be little to stop the shares from finally revisiting their May 2021 IPO price of $22.
If the mood of the market turns more negative as we start 2025, it is really difficult to say at this point how it would affect SMWB. For now, we are bullish on the stock unless/until the market gives us a reason to think otherwise.
More on Similarweb
Latest investor presentation as of 12 November 2024: SMWB Q3 2024 Investor Presentation
Technicals calculated by Trading View: Technical Analysis of Similarweb Ltd. (NYSE:SMWB)
TalkMarkets recent report on the company: Similarweb Stock Price Has Soared And Has A 21% Upside