Many of the hottest stocks from the early days of the pandemic were completely forgotten in 2022. This is particularly true when it comes to newer, more speculative, high-volatility names.
Right now, many of those overlooked stocks are forming bullish patterns. Let's go to the charts to uncover some opportunities that could surprise investors in 2023.
Zillow Builds Up
At the height of the pandemic, Zillow (Z) made investors feel right at home. The stock gained an incredible 197.2% in 2020.
Since then, Zillow has left shareholders in the cold, falling 54.23% in 2021 and 49.84% in 2022.
What's next for Zillow? The stock traded at a six-month high on Monday. Zillow's chart is indicating that further gains could be in store.
Zillow is forming an A-B-C-D pattern. That bullish formation projects the stock to the $55 area. Zillow is still a long way from $200, which the stock printed in February of 2021.
Charts by TradeStation
Zillow received a bullish momentum signal (arrow) earlier this month, when its 50-day moving average (blue) crossed above its 200-day moving average (red).
The only missing ingredient here is volume. Zillow needs a catalyst to excite potential buyers. The real estate-focused company is scheduled to report earnings on Feb. 15.
An Etsy Bargain?
In late 2021, shares of online marketplace Etsy (ETSY) traded above $300. By the middle of 2022, the stock had fallen to the high $60s.
Now Etsy is on the rise. The stock has formed an inverted head-and-shoulders pattern (L-H-R). This bullish formation projects Etsy to the $170 area.
The company is scheduled to report earnings on Feb. 23.
In 2022, shares of e-commerce platform Shopify SHOP lost 74.8% of their value. However, the stock has already gained over 25% in 2023. According to its chart, Shopify could be on the verge of a breakout.
Shopify has formed a rounded bottom pattern, projecting the stock to $54. The stock's 50-day moving average (blue) recently crossed above its 200-day moving average (red), a sign of bullish momentum.
On Monday, Shopify climbed over 8% to close at a six-month high. The company is scheduled to report earnings on Feb. 15.