Overview
The speaker, Royce Jacob, discusses the recent surge in Open Door Technologies ("Open") stock, evaluates the hype-driven momentum, technical patterns, and shares his trading perspective and medium-term price targets, cautioning against unrealistic expectations in meme stock cycles.
Recent Performance and Market Context
- Open Door Technologies stock surged over 500% in July, driven by retail traders and social media hype.
- Trading volume spiked, with $1.9 billion traded Monday—over 700% higher than its three-month average.
- The stock was frequently mentioned on Wall Street Bets and compared to previous meme stock runs.
- Prominent investors and internet personalities have set extreme price targets, with some calling for $82 per share.
- The speaker strongly disagrees with such high targets for 2025, favoring a much more conservative approach.
Technical Analysis and Trading Patterns
- Open Door rallied 240% in the week leading up to July 22, then corrected by 45% from its recent high.
- The stock bounced off the 100 EMA on 15-minute candles, maintaining a pattern favored by the speaker.
- Large trading volumes and high liquidity suggest a strong foundation for a hype cycle.
- The market cap is about $2.2 billion, which is relatively small and can contribute to fast price swings.
Fundamentals and Earnings Outlook
- Open Door remains unprofitable but is showing improving financial direction and narrowing losses.
- The company will report earnings on August 5, with the speaker expecting continued lack of profitability but positive trends.
- Fundamental improvements are considered secondary to momentum in this type of trading scenario.
Price Targets and Trading Strategy
- The speaker's price target for Open Door is $12.50 to $13.70 in the short to medium term, based on historical resistance and support.
- He plans to gradually sell positions within this range rather than waiting for higher, less realistic targets.
- Emphasizes the importance of exiting before the majority of retail traders to avoid losses during volatility.
- Advises skepticism toward overly optimistic price projections commonly found in online forums.
Community Engagement and Resources
- Daily trade alerts, newsletters, and portfolio insights are available through the speaker’s subscription service.
- Encourages viewers to share their own targets and trading thoughts in the comments for community discussion.
Decisions
- Set short to medium-term price target for Open Door at $12.50–$13.70.
- Plan to start exiting positions as stock approaches target range, rather than waiting for extreme highs.
Action Items
- August 5 – Royce Jacob: Monitor Open Door’s earnings report for impact on the hype cycle and technical targets.
- TBD – Subscribers: Consider following trade alerts and updating positions according to evolving momentum.