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Viacom Inc waiting for a reversal for NASDAQ:VIAC by monsRUS

On December 4, 2019, the merger of CBS Corporation and Viacom Inc. The combined company is renamed ViacomCBS .
VIAC has around 30 million subscribers worldwide and streaming revenue of $ 3.6 billion. It is expected to grow to $ 7 billion by 2024 at an average annual growth rate of 30%.

Over the year, the share price has risen by 800%, based on today’s estimates, the company could lose half of its current investment value. Traders currently view VIAC as an endless growth stock, like TESLA in its day, and to a greater extent it is speculation. ViacomCBS’s share price is illogical. This does not make sense in light of the company’s own growth expectations and the state of the industry.

The higher the price, the more desirable the product becomes in the eyes of the buyer. Let’s take away the greed and look at ViacomCBS stock from a technical analysis point of view. When the price reached $ 95-100, the volume of transactions increased significantly. I want to draw your attention to a sharp jump in the price from $ 86 to $ 102 on an increased volume , then a rollback. Such a structure tells us in most cases that there was an exit of large players who manipulated the movement.

Three deal options

The first option by trend:

Breakout of the $ 100 level and exit on a long hourly candle.

Second option against the trend:

Rebound from the $ 100 level, exit at $ 92

The third option is to retest the trend line .

I choose the third option

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