Arcutis Biotherapeutics Inc

📊 Investing
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Hello you very wonderful and intelligent individuals that make up this forum. I sincerely hope you are enjoying your weekend.

I have been following the stock Arcutis Biotherapeutics NASDAQ: ARQT. They are near FDA Approval for their, Roflumilast Foam for Dermatitis, which hopefully should be granted in December 2023. Patients who have been on the trial and used this foam on their scalp have reported great success.

They already have the Topical Roflumilast Cream approved for Plasque Psoriasis. However the stock appears to constantly head lower. Do you please think if the company gets FDA Approval for the Roflumilast Foam in December do you think the share price could increase please? If anyone kindly had any thoughts on this i would be forever grateful it would mean the world to me.

Sending you lots of good wishes and i truly hope you have a wonderful day. All the very best to you and hope you have a wonderful and amazing life.

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I’ve never heard of the company and so really appreciate you highlighting it (it is always good to take a look at a new company). I’ll try to look at the fundamentals but one immediate thing that stands out is that Benzinga says that the short interest is 22.8%. That may be out-of-date by a week or so but since Nov 2022 the short interest has always been over 20% and the highest value I say was a huge 36%. So for the last year it has been consistently shorted. In that time the price has gone from $19 to $2.

I’ve got no idea (at the moment) about the fundamentals or the business but the level of short interest does help give a background to the drop in the price. So the question is whether the shorts will continue and know something about the fundamentals to indicate that the company is a disaster or whether fundamentally its a good company and the shorts are going to close out with the price rising. At present I have no view on that but always like to look at companies like this (and at a personal level I really dislike shorts damaging good companies I couldn’t care less about day traders shorting volatility but causing long term damage is another thing - just a personal view).

One comment that I would make is that I often see a sharp or short term drop in the share price before a strong rise. Whether it is true or not, one view is that the market makers or shorters drop the price to trigger stop losses or shake out weak holders before the start the buying. I was going to make a post specifically about this and the difficulty telling whether a drop is a shake before a massive rise or another step down on a downtrend.

I’ll try to look at the company over the weekend but the chart is a bit weird at the moment. I use some complex indicators and they are showing very strong divergence from what the price is doing and it isn’t obvious why.

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I’ve just had a quick look. There was an article by Zacks’ yesterday

After Plunging -35.64% in 4 Weeks, Here’s Why the Trend Might Reverse for Arcutis Biotherapeutics, Inc. (ARQT) | Nasdaq

Zacks doesn’t have a great track record (from what I’ve read but wdik). I may be wrong but Zacks largely use algorithms just to rate or rank companies and also follow analyst rating to try to spot when forecasts increase or decrease as a why of indicating whether results are going to be good or bad. I don’t tend to pay that much attention to their ratings but they are interesting to simply get a view of what the market may be thinking.

In terms of ARQT some big firms have recently downgraded ARQT. Morgan Stanley reduced their price target from a massive $45 to $10, JoneTrading downgraded it from buy to hold and Needham reduced from $22 to $8. Again I look at this to provide context (I’m rather sceptical about a lot of analyst targets and ratings). In the case of ARQT I can see that having a price target of $45 when the share price is $2 is a bit embarrassing and in the case of Morgan Stanley they kept it as a buy with a price target x5 higher than the current price so while it was a downgrade I wouldn’t really consider it bad (so I look at the context…).

In terms of my comments about the chart - it is interesting that since 20 Oct the volume has been higher than average (every day since 20/10) and the price has been unusually flat.

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This article seems to give a reasonable overview of the business:

It is from April 2024. In Oct the company announced a $100million public offering, That basically explains a lot. The share price was dropping during the year because shorters knew that the company would need to raise a lot of cash which only happened in Oct (arguably it should have happened a lot earlier to avoid a lot of the pain and to raise the money at a better price but maybe underwriters were delaying…).

The share price got really punished along the way and it is pretty shocking that the placing was at $2.50 given that even in May the price was $14.

I don’t know enough about the business to know how long this cash will last and whether the company is forecasting a date for profitability. I think they’ve simply said they have cash for another 12 months which isn’t great. Unless there is cost cutting is significant increase in revenue they seem to say they will need to raise another huge amount of money from shareholders so that raises the concern that there might be nice rises in share price only for shorters to take the price down again. Until there is a path to profitability it is going to be high risk but drug approvals will obviously give a good boost but they have to turn that into revenue

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Thank you very much for your very helpful and detailed reply, what a truly wonderful person you are WakeMeUp. I am really thankful of your response, it has been exceptionally helpful for me reading your posts.

Although i understood about the business, it is developing various products and should get FDA approval in December for Roflumilast Foam used against Dermatitis. Then it will need to turn this into revenue, so hopefully if it does need to raise again, i am hoping it will be a lesser amount than the ÂŁ100 million public offering, if it is making revenue from its products next year.

What i couldn’t understand with the company making progress was why the share price declining so much. You very kindly helped with that and it makes complete sense as they diluted shareholders this year, the shorters took massive advantage of this company’s weaknesses. I very much appreciate your thoughts on this it was extremely helpful.

Can i please ask what is the best site for looking at short interest and what percentage would you need to see, so this does not caused a downward trend in the share price please? Lastly i do note recently there also has been some insider buying by directors, i am interested in your thoughts on whether now would be a good entry time in particular with the hopes of a product approval in December this year? If you kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Thank you for being a fantastic member of this forum as i continue to learn everyday about investing you have been an enormous help WakeMeUp. A massive credit and thank you to you for being a wonderful person. Hope you are enjoying your weekend and all the very best with your investing.

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Short interest: I haven’t found the “perfect” site to get short interest. Benzinga is a good starting place for US stock and if you look up the ticker to get the company info there is a tab for “short interest”. The nasdaq website also lists short interest (I suspect that’s where benzinga gets its data from but it is only published twice a month with several days delay so it can be 3 weeks old. Also if you have an invest account with T212 you can look at lending demand which I think is much more current and gives at least a rough idea about the level of shorts (ie the demand for share lending). Trading-ideas also has short data but it seems to be rather variable. There is another good website but I can’t remember the name off the top of my head (basically benzinga and T212 lending demand give me sufficient idea for my purposes).

Insider buying is generally always good provided it isn’t some tiny amount (ie $5k). I have another investment where the insiders just bought $100k and that caused the price to rise but it can be a fairly short lived affect but does give a subtle longer term shift in sentiment.

The cash position is very significant. In the case of Arcutis the market knew that they would need to raise funding (and the company was also clear about cash burn). Not only do you have shorts in the market but you have options so people would have been trading options. I haven’t checked the options volume for Arcutis and haven’t looked at the volume of Puts and Calls (both in the money and out of the money)

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Thank you very much WakeMeUp, i am extremely grateful for your very helpful and detailed response that is very kind of you. I truly wish you another wonderful week ahead.

I understand that Benzinga offers data on the short interest, but the data can be 3 weeks old. However lending demand on T212 maybe more current, so thank you very much for your feedback on this its highly appreciated. I am very grateful for your response on this.

I believe the insider buying on Arcutis Biotherapeutics was 200k by the Beneficial Owner at a price of $2.50 so quite a bit higher than the price at current. So this could hopefully help with a positive shift in sentiment.

Can i kindly ask please where you get the information from for the volume of the Puts and Calls please, can this also be obtained from T212 also? Lastly can i please ask which site you mainly use for your charting information and technical data such as MACD figures and monthly/weeks charts please? If you kindly had any information on this i would be forever grateful and thankful it would mean the world to me.

Thank you so much for your kindness and support WakeMeUp you are a very wonderful person. You deserve every success in your investing, hope you stay in great health and happy. Sending you lots of good wishes and hope you have another wonderful week. All the best to you.

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I use IBKR for Options but the information is all available via the nasdaq website.

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For charting I use TradingView. I don’t use any standard indicators (ie MACD) I have written my own script which has algorithms that amalgamate several types of indicator into a single script so the script looks at multiple moving averages, the candlestick formations, open/close, trendlines and has highly modified forms of RSI and stochastic. My next task is to add algorithms into the script to calculate support/resistance levels as well

I’ve never got on with MACD and felt that the standard forms of RSI weren’t always good. I did tend to use Stochastic and think that moving averages, vwap, etc. are very useful. I think charting is one of those things that people have to find what works for them but often simple things like support/resistance levels and MA can work well

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Thank you very much WakeMeUp for taking the time to provide further information on your trading setup, that is extremely kind of you. I am forever grateful for your kindness and support.

I have mainly been value investing for the past few years, but specifically these last 2 years, in this bear market, have i started learning more about Technical Indicators. I only use a few indicators such as MACD and maybe a few moving averages, however the success rate is varied, its incredibly difficult. However i will keep persisting with things.

Can i kindly please ask have you ever run your Technical Analysis on for instance the NASDAQ Biotechnology Index? As the Biotechnology stocks usually move in line with the Biotechnology Index, do you think this could provide further insight. Lastly do you please think all the indicators such as MACD and RSI are all equally the same at detecting trends please, or do you think some indicators are more reliable such as Moving Averages please, to try and get a good success rate for using these with investing? If you kindly had any thoughts on this i would be forever grateful and it would be highly appreciated.

I am really impressed you have made your own script which uses algorithms that amalgamate several types of indicators, i think that is amazing. Thanks again for all your help its really hard trying to navigate this field of Technical Indicators, but thanks for being a very wonderful and amazing person. You have been a star of this forum. Have a wonderful evening and all the very best to you WakeMeUp, i hope you achieve massive success with your investing, you deserve it. Keep up the amazing work.

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Hi @robertbanking

moving averages and support resistance levels are pretty straightforward. Also I think the candlestick analysis is fairly straightforward but is certainly not itself reliable but can help confirm other signals or overall analysis. Thus hammer candlesticks can be good (as an example) when they confirm an overall analysis or other indicators. I know that some successful day traders will pay careful attention to the candlesticks to spot potential reversals or the end of a strong bull/bear movement.

I have never really used MACD. I just don’t find it very helpful but many people do so I generally think that’s just me. I find that it doesn’t give (me) strong/clear signals and often lags.

So my own personal view/experience is that using MA and SR levels is a good starting point. Note that SR levels don’t have to be flat they can be rising or falling lines. I also like a lot of the SR formations - eg wedges, triangles, etc. I think when you are starting to look at charts they are easy to understand and fairly easy to spot.

I do find that some chart patterns are wrongly interpreted - ie people saying that there is a cup-and-handle when it isn’t and all of the criteria aren’t met.

Personally I work in computing, algorithms, mathematics… and it helped me (but maybe wouldn’t help most people) to go back to the raw formulas for RSI, Stochastic etc and work out what they are actually doing and how they work. Using them and doing detailed analysis of them (and particularly when they didn’t work) helped me to modify them to start developing my own script (which is still a work in progress). Firstly you need to understand that some indicators are good for trends and some are good when a price is ranging. So any one indicator will not be good in all circumstances. That is important to remember.

RSI and Stochastic are momentum oscillators but work differently. RSI is based on daily price movements and is good when a price is trending. It is basically comparing the total of the green days and total of the red days over the chosen period (ie 14 days if it is a 14 day RSI). In contrast Stochastic is basically looking at where the last closing price sits in comparison to the chosen periods high and low - ie if it is a 14 day Stochastic it looks at the high and low for the whole 14 day period and looks are whether the last closing price is in that range. Depending on the period (and whether the results are averaged - ie slow stochastic) the stochastic can be good in both range and trending situations.

Many indicators will work fine on indexes (is the biotech index).

MACD is based on moving averages and then taking an EMA of the difference between the two base moving averages. As such I find it is a very laggy indicator. Also it doesn’t work as well when the price is ranging (but some use it to try to spot reversals but the issue there is the lag) and is generally used in trending markets. I’m really not the best person to ask about MACD because I simply don’t use it.

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Thank you very much for your amazing response WakeMeUp, you have been a phenomenal help and you are a genuinely amazing person. I really appreciate all the effort you have gone into this as it really means the world to me.

It was an eye opener for me that different indicators are used in different situations, most probably where i am going wrong. So i very much appreciate the details you have provided. Clearly you need to determine whether the price is trending or ranging and use indicators that are suitable for that situation. I very much appreciate your thoughts on this, it was highly appreciated.

I also appreciate that using MA and SR levels is a good starting point alongside some of the candlesticks, such as wedges and triangles. I really appreciate your advice on this.

So if i understand it correctly with Arcutis Biotherapeutics, i would be Trend Trading alongside my Fundamental Analysis of the business. Trying to enter the stock when it has reversed. Can i please ask what indicators would be best for this type of Trend Trading, would the Moving Averages combined with a RSI indicator be helpful for instance please? Lastly i do note there was some statistics that alot of Swing Traders fail and wipe out there account, i dont understand why this would be if you had a very strict criteria with tight stop losses. Do you think this is people who are not disciplined please, like those that invest all their life savings for instance in Penny Stocks? If you kindly had any advice on this it would mean the world to me and i would be forever grateful.

I dont have any further questions, these are kindly the last two, but thanks so much for your support. I may continue reading books on how to use these Technical Indicators correctly, as i find it fascinating the more i learn about this.

Hope your having a fantastic week WakeMeUp and it has been a real pleasure to talk to you. In my view i think combining Technical Analysis with Fundamental Analysis for better investing is a great idea. Sending you lots of good wishes WakeMeUp and hope you stay happy and healthy. With my every best wish and i genuinely hope you achieve massive success with your investing.

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There are no simple answers and everyone will have their own view (so dyor/do your own analysis…). My own comments based on quickly looking at ARQT chart.

At present you could argue that ARQT is ranging (horizontal channel) or trending (long term down trend) depending on how you look at it and what timescale you are looking at. I suspect that ARQT is very difficult to really analyse at present and I would definite look at the traditional indicators simply to look at what they are saying. However… there is essentially a range between 1.85 and 2.54 plus a long term downtrend. You could potentially say that there is still a downtrend within the current range but I would look at the chart as a long term downtrend and a short term range. An issue is that the range is pretty wide (30% ie $0.7). So there are three situations - trading within the $0.7 range, looking for a break below 1.85 and a break above $2.54.

This range started on the 20 Oct and is one of the longest relatively flat periods in ARQT’s history. The problem with breakouts is that they can be traps and can reverse after a few days. With ARQT it will be hard to know whether it has reversed and is in an uptrend. Also what often happens is that the price shoots up very rapidly (ie doubling in a day) and then crashes back or even starts making new lows.

Thus I suspect that the ARQT chart will become obvious in hindsight but in reality be hard to predict in the moment. It will be hard to know whether a move is a real breakout or a false one and I suspect it will not be certain if and when a long term uptrend begins. Thus if it is a question of confirmation and confidence (linked to fundamentals). Trading the current channel (if it even continues) may be easier to read because it doesn’t rely on trusting breakouts.

There are lots of theories about breakouts but the problem will be that most theories/strategies say that any breakout has to be confirmed - ie the price breakout but has to stay clear of the previous support/resistance level or channel. The problem then is how long does it have to stay clear. Personally I think (in a case like ARQT) is where fundamentals and chart analysis merge. So if the price breaks $2.54 I would look at how it breaks (is it a massive jump up or modest daily rises), whether there is news and how it holds

Basically I wouldn’t completely trust a breakout until it has made new highs and retraced once or twice (ie made one or two lows ABOVE 2.54). Thus if it went to $3, fell back to 2.6, rose to 3.2 dropped to 2.9 and was rising again I would probably begin to trust that it might be forming an uptrend but wouldn’t trust one peak.

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stop losses are very dangerous (in my opinion). The market will often try to trigger stop losses so you will often see a price dropping significantly before a massive rise or breaking out upwards and holding for a few days before crashing down to new lows.

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Just to follow up my comments. The chart is a bit negative at the moment. I tend to use daily candles looking at long term charts but looking at the 10min ARTQ (10min candles) is pretty consistent with the daily candle chart.

There are some lower highs and flat bottom (creating descending wedge/triangle). There was a rising support level connecting the rising lows earlier but that got broken and the break of that support level is very typical with 4 candles trying to hold the rising support (now resistance) before the price gives up and drops (moves sideways ie dropping below the rising line). The price then forms a falling resistance line which is still in place.

So on this 10min chart there will be a crunch by the close today for the price to decide whether it is breaking up or down (from the converging lines). Thus I think the chart is a little negative but the fundamentals that you’ve highlighted are positive.

artq

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Thank you very much for all your support WakeMeUp, you are definitely the best person i have ever spoken to on any investment forum. Thanks very much again for your kindness and your support.

It is alot more complicated than i first thought, so i can understand why Swing Trading is so complicated. Even with breakouts as you mentioned most theories/strategies say that any breakout has to be confirmed, including the price breakout has to stay clear of the previous support/resistance. However, i agree with your thinking that combining Technical Analysis with the Fundamentals should help make your decision making.

Thanks so much for all your time and hope to see you around on this forum and keep in touch with you. Hope you continue to enjoy your week and thanks so much for being a wonderful person. Good luck with all your future endeavours, you are very intelligent and i am confident you will do very well. All the best to you.

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Hi Robert. Nobody has the perfect strategy. I certainly don’t. I think discussing ideas and strategies with others is a big benefit and helps us refine our own strategies if we are prepared to question our own investing.

I love to get shares at what I hope is the bottom. The problem with most breakout theories is that they are reliant on confirmation and often that confirmation can be questionable ie the price breaks out and satisfies the theory requirements for a breakout but then a couple of days later fails and drops back. Thus I have two problems with the common theories - 1) you generally miss a significant rise in share price waiting for confirmation and 2) confirmation can be flawed and you can then end having bought at a peak. The standard breakout theories are good when there is a long term uptrend or the a sustained rise. They aren’t good for short term rallies or rises.

Edit: I do think higher highs and higher lows or lower highs and lower lows is a fairly powerful indicator and a good positive (not nothing is 100%). If I see high volatility I sometimes just go with my gut if the price makes a big move in the opposite direction. A recent example is CHGG (you can look up my earnings/results post). After the results the price tanked to low $7 and I really had to question myself for believing in it but decided to load up again and it then shot up and went to about $10.40 to then drop back to circa $9.70 and then rise back over $10. Sometimes you just have to hold on for the ride

I think it is important to recognise when/where you are trading. If the price has declined/dropped and you are trying to catch the bottom that isn’t a breakout. A breakout is when the price is breaking through a previous support/resistance level and is therefore a question of whether the price will bounce off the level or go through it. Those two situations (reversal or breakout) are very different and may have very different targets for where the price will go.

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Thank you very much again for another fantastic reply WakeMeUp, you are wonderful. I also love chatting with other very intelligent people like yourself, as it allows me time to reflect on my own strategy.

You cannot get these ideas from books or courses, its sometimes an eye opener to hear what somebody else has to say. That is why i am very thankful for your time. I am sorry to reply to you again, i dont want to consume too much of your time, as i am sure you are very busy with your day to day life.

I think what was really inspiring about your post, is to not overly complicate things. For instance the breakout theory can be applied if there is a long term uptrend, but you need to be cautious that its not a short term rally, as you say nothing is 100%.

I like what you said about CHGG, to be honest with Arcutis Biotherapeutics Inc, i was trying to practise with Technical Indicators and what i hope should be positive news in December 2023 for the company, a bit like you have done with CHGG. However, my strategy wont be perfect, its a bit of a DIY approach, getting as much knowledge as i can.

Can i kindly please ask lastly what you saw in CHGG, had you heard that positive earnings would be forthcoming and once you was happy with the Technical Indicators you decided to hold through news? If you kindly had any thoughts on this i would be forever grateful and thankful it would be highly appreciated.

These discussions have been very helpful WakeMeUp, i really appreciate the time you have spent talking with me. You have given me a few ideas to hopefully help me refine my strategy. I wish you a wonderful life WakeMeUp and you deserve every success. Keep up the amazing work and like me i am sure you continue to learn everyday. Hope we can stay intouch, as i think you are a fantastic individual with a wonderful mindset. All the very best to you.

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Thanks again for the kind words.

I knew nothing about CHGG (and had never invested) prior to the share price crashing in about May 2023. The company had released results and the CEO made a comment (I think in the conference call or post results interview) that the company had not seen significant impact on subscriptions in the quarter from ChatGPT. The market suddenly realised that ChatGPT could basically destroy CHGG’s market (it provides study tools to college/university students) and so the price collapsed and it took the share price of a few other companies with it (those companies price have largely recovered).

So I originally bought CHGG and a pure trade to trade the bounce from an overdone drop and made about 20% from memory. I then did some better research and looked at the fundamentals but basically just traded the volatility based on chart analysis. However, the company had about $1 billion of cash and cash equivalents on the balance sheet and was valued at about $1 billion (post crash) and had free cash flow and I think at the time was even undertaking a share buyback. Also a few weeks prior (in April 2023) the company had already announced that it was using GPT4 to develop their own AI learning tools (and there was a video where the CHGG CEO and Sam Altman had a joint Q&A open forum discussion together and clearly had known each other for a fairly long time).

Thus I can see that AI could destroy Universities as we know them (why pay a huge amount to go to a Uni when you can get a personalised AI tool that will teach you one-on-one for a fraction of the cost). However, there is a massive market for AI learning (assuming people want to learn - ie that AI/robots don’t take over everything and humanity becomes redundant). That requires a company to be focused on the future market - developing AI tools for learning and I am still not convinced by the current CHGG executive (I’ve read they didn’t realise how significant AI was going to be, how quickly it would happen and I think they are too committed to the present learning models ie Uni). Thus at the moment I don’t consider CHGG a long term hold solely because of reservations about the executives and concern over the long term business model.

Anyway, in the June period results they did give a positive story and said that the quarter to Sept 2023 would be the start of a turnaround (in terms of growth - in covid lockdown they got a huge boost so suffered some decline since then and are projecting a return to growing subscriptions). Thus the Sept results were an important milestone and you can read my post about the results and price volatility.,

I like to listen to conference calls and would highly recommend doing so if you want to learn about a company or just the market - ie listen to MU conference call is informative about an important section of the semiconductor market. In the last CHGG conference call (Sept quarter) they announced good results but also a much clearer AI vision/rollout and also an expansion into other learning markets (ie corporate and workplace learning). The conference call didn’t radically change my view of CHGG but I felt that they were heading in the right direction. Thus when the price collapsed to new lows around $7.40 it was a clear 1) is there something dire that I’ve missed or 2) is this a stupid drop and perhaps market manipulation that will reverse. I chose 2 and loaded up and 2 days later the price rose to just under $9 which is a clear SR level so I sold a lot and then bought again when the price went under $8.6/8.5. It then gapped up and rose to $10.50. Other than a single 1 day rise in Aug the 10.50 level is basically the main post crash resistance level so it was clear that it could bounce down from their (if it broke through 10.50 on the this attempt it would have been an extremely bullish signal). It fell back to mid $9 and has now gone back over $10.

I suspect that there has been a fundamental shift in sentiment. If you listen to the NVDA conference call this week there were comments about companies using AI and LLM and the market potential. Thus I think the market is realising that people will not simply be using ChatGPT for free for all of their AI needs. The fact that AI requires expensive processing also helps this - why is someone going to provide free AI when it costs them a lot to provide it. Thus the initial panic of the market that AI would simply destroy markets and companies was too simplistic. Yes AI will be highly disruptive. Yes it will affect jobs and markets (eg Universities are a good example) but it will also generate massive revenue and profit for many companies.

I’ve considered CHGG a recovery trade/investment not a long term one. As a recovery $10.50 or $11 could be argued as a milestone in the recovery. Going much beyond this depends on how good the company is from hereon in terms of delivering results. The price could do well if they deliver an increase in subscriptions but long term it is going to depend on how well they deliver AI learning tools and how well the develop and expand the markets (and whether they stay loyal to colleges/Universities or embrace the potential demise of traditional learning)

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Thank you very much WakeMeUp for another superior post, i am really thankful for these discussions. You are a very amazing and highly intelligent person. I cannot thank you enough for your support, it really means more than words can say.

I really like how you have used your own imagination to create your own Trend Trades. I really admire what you did with CHGG, i can understand how an overdone drop can be significant. Especially if the CEO made a comment that the company had not seen a significant impact on subscriptions in the quarter from ChatGPT, so a positive confirmation for your trade.

I had never really took much notice of the support and resistance levels, however from reading what you said this is significant. As it was helpful for you to know that when the price rose to $9 with CHGG, it had a high chance of then dropping lower, before rising again to $10.50. Thank you very much for sharing your thoughts on this, i am forever grateful for the time you have give me, you are amazing, thanks so much.

I dont know if you had kindly time for one final question, i appreciate you must be very busy and i am very sorry to ask. If you could kindly help with this i would be forever grateful and thankful.

For instance with Ryanair Holdings (NASDAQ: RYAAY), i have done some research and believe it has competitive advantages due to a well run business model, being efficient with costs. Maintaining and even winning an award for Europes best lowest cost airline. Even selecting routes that are profitable and exiting unprofitable flight routes. I believe this company will achieve growth for the next few years, however the stock at the moment has achieved a new all time high for the year. Does buying a stock on an all time high always mean its going to retrace, or if the business continues to be profitable could it still continue to rise please? This is why i have been trying to learn more about Technical Analysis i always worry there will be a massive drop when i enter a stock, that will take months to recover from, or is there any other factors to consider when it could be the time to take an entry in a stock please?

Thank you so much again for all your support, WakeMeUp, you are an incredible person. I know you will achieve massive success as i think you are an incredibly intelligent person. It really means the world to me, for sharing your thoughts with me. I will remember you for a long time, while i continue learning more about investing. Thank you again for your kindness and have a relaxing weekend.