Taboola (TBLA) is an internet "discovery platform," that tries to curate just the right things online to users based on a person's interests. The company achieves targeted content along with tailored advertising and marketing by making recommendations of what users may also like. The company serves 360 billion content recommendations to over one billion people across the web each month. Impressive.
Before Monday morning I had never heard of this company. Yahoo and Taboola had entered into a 30-Year commercial agreement and TBLA was up sharply in early market trading.
Let's check out the charts.
In this daily bar chart of TBLA, below, we can see a longer-term downward trend for this stock. Prices were higher and could challenge the downward sloping 200-day moving average line in the days ahead. Trading volume has jumped in the past three weeks and it is likely to jump today.
The On-Balance-Volume (OBV) line has jumped since the middle of October. The 12-day price momentum study in the lower panel shows a large bullish divergence as the study makes higher lows as prices make lower lows. The pace of the decline has been slowing for months and this typically foreshadows a rally.
In this weekly Japanese candlestick chart of TBLA, below, we see a mixed picture. The candles do not show us a clear bottom reversal but last week's doji is likely to turn into a reversal with a strong white real body (bullish) this week.
The 12-week price momentum study shows a pending reversal and the OBV line shows the start of a potential upside move.
In this daily Point and Figure chart of TBLA, below, we do not have Monday's prices plotted but we should get an upside price target when prices move above $2.16.
Bottom line strategy: TBLA shares have surged. Traders should be patient and wait for a minor pullback to see where buyers come in. Use this correction to probe the long side. Tentatively risk to $2.00.
