Apple (AAPL) does not manufacture iPhones. It contracts the manufacturing to Foxconn. Foxconn is owned by Hon Hai Technology Group a Taiwanese company.
We previously shared with you that Apple is working on an electric car. There is much speculation as to who Apple will collaborate with.
Fisker (FSR) is an electric vehicle company. FSR is teaming up with Foxconn on a project named PEAR (Personal Electric Automotive Revolution). The goal of the project is to produce a breakthrough electric vehicle. They are looking at markets in North America, Europe, China and India.
Production is projected to start in Q4 2023. The vehicle will be sold under the Fisker brand.
High Risk High Reward
Investors need to understand that as exciting as this news is, this position in FSR is based on momentum strategy. Momentum strategies present high potential rewards but also high potential risks. Lately, momentum strategies have worked well but they are inherently high-risk strategies because there is no valuation support. For this reason, only aggressive investors should consider a position in FSR due to high risk.
Further, FSR is a speculative position. Please read the speculative positions section in Trade Management Guidelines and make sure you fully comprehend it before investing in any momo stock such as FSR.
Zones
There is an existing position in FSR. Some of the following is for those who are not already in this position.
For those following the Best Way, the new buy zone is 🔒 (To see the locked content, please take a 30 day free trial). FSR is trading at $19.00 as of this writing.
For those following the Good Way and are super aggressive and understand the risks, the Buy Now rating is 🔒.
Please read Trade Management Guidelines to learn about scaling in.
The new first target zone is 🔒. The second target zone is $48 to $52. In a vicious short squeeze, the stock can go over $100. As a note of caution, these target zones are based on the behavior of the momo crowd and electric vehicle stocks. If it was not for the momo crowd, the target for this stock would have been $5. This illustrates the risk.
The stop zone is 🔒.
The maximum recommended quantity is 20% of full core position size. Those who want a closer stop at the risk of getting whipsawed may consider a stop zone of 🔒.
Increasing Rewards And Lowering Risks
Those who want to further control the risk and increase reward may consider a smaller quantity and use the concept of Trade Around positions with tight stop zones in addition to a very small core quantity with a wider stop. Please see Trade Management Guidelines to learn about Trade Around positions.
What To Do Now
Those in the position may consider continuing to hold.
Those not in the position, are aggressive and understand the risks may consider following the parameters given above.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
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