While the long-term trajectory of the benchmark equities index may be linearly northward, deciphering next moves for individual securities can be frustrating due to behavioral dynamics. Case in point is blockchain miner MARA Holdings Inc (NASDAQ:MARA). Speculators must consider not only the kinesis of MARA stock but also where it may ultimately end up.
When it comes to broader narratives, MARA’s business profile may present some “deceiving” signals, for lack of a better word. For example, the company and one of its main rivals, Riot Platforms Inc (NASDAQ:RIOT), theoretically benefit from the same fundamental catalysts. In the current paradigm, a favorable regulatory environment should boost MARA stock and its ilke.
However, the distinction for RIOT is that the security signaled a directional bias. First, technical analysts would arguably identify a bullish flag formation in the charts. Sure enough, since the beginning of the month, RIOT has been charging higher, appearing eager to break out of its consolidation cycle.
Second, the security features a statistical catalyst in that extremely positive weekly performances yield what is known as FOMO or the fear of missing out. In other words, strength begets strength, with the odds of a long position being profitable reaching several percentage points above a coin toss.
Unfortunately, the same framework does not apply to MARA stock with equal vigor. Therefore, traders may need to pay for the extra coverage inherent in a long iron condor.
Directional Ambiguity for MARA Stock Incentivizes a Special Trade
Although MARA stock has also been …
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