Buy the Dip on This Beverage Stock

CELH is down over 20% since the start of the month

Deputy Editor
Jun 11, 2024 at 12:38 PM
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Shares of Celsius Holdings Inc (NASDAQ:CELH) are down 20.2% since the start of June, on track for their sixth daily loss in the last seven sessions. The stock had already posted a few sharp losses at the end of May following Nielsen data that disappointed investors, but several analysts called the selloff "overdone," highlighting long-term growth potential. Since the start of the year, CELH is still up 17%.

At last glance today, Celsius stock was down 3.2% at $64.02 and on the short sell restricted (SSR) list. For those looking to buy in on the dip, however, the stock could indeed see tailwinds soon.

Short interest represents 11% of the CELH's available float, and would take over three days to cover at the security's average pace of trading. Furthermore, the stock's 14-day relative strength index (RSI) of 14.5 sits firmly in "oversold" territory, which is typically indicative of a short-term bounce.

On the charts, the negative price action has Celsius stock within one standard deviation of its 200-day moving average, defined for this study as having traded north of this trendline 80% of the time in the past two months, and in eight of the past 10 trading days. CELH has flashed four similar signals over the past three years, after which the stock was higher one month later 50% of the time, averaging a large 12% gain. A move of this magnitude would put the shares back above $71.

CELH June 11

 

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