Sezzle (SZL) is a buy now pay later (BNPL) provider, which has rallied from around $1 at the beginning of April to be currently trading near $10.
Recommendation Update: 3 September 2020 10:00am
SZL – Move back below $9.65 on Tuesday would of triggered trailing stop loss levels. Cease coverage for now.
Recommendation Update: 31 August 2020 10:00am
SZL – Friday was an inside day with a high close. Expect to see some sideways consolidation for a few days. Stops on an remaining open position should be placed just below the low from Thursday, which was $9.65.
Recommendation Update: 28 August 2020 10:00am
SZL – initial target at $11.13 reached. Prices closed the day below the open, which is evident by the black candle. Nevertheless, we still had a higher high and higher low than the prior session. We would be lifting the trailing stop loss on any remaining position to just below the lows from Thursday at $9.65.
Recommendation Update: 27 August 2020 10:00am
SZL – Take initial (half) profits in the region of $11.00 – $11.13. Stops should be lifted to $9 to $9.15.
Recommendation Update: 25 August 2020 10:00am
SZL – Breaking up on good volumes, with a strong close above $7.89. Measured move is $11.13. Stops should be lifted to the $7.60 to $7.70 region.
Recommendation Update: 21 August 2020 10:00am
SZL – Look for a break above $8.
Original Update: 19 August 10:30am
The company has recently raised $7.2m in capital through an share purchase plan (SPP) in order to facilitate their aggressive growth strategy. The SPP was heavily oversubscribed, with eligible holders getting scaled back to a mere 7.1% of the amount of subscriptions. All those investors who failed to receive the amount of shares they wanted are left now to buy at market.
Technically, a triangle consolidation pattern has formed, which has resulted in a sharp decrease in volatility. We would suggest trading this one on an upside break. The first key resistance level is the recent high at $7.89, followed by the large round number at $8 a share, while stops should be placed below the recent lows of $7.01. Initial upside targets would be in the vicinity of $10 a share.
