- Bros stock price closed at $32.20 with an increase of 0.56% during the last intraday session.
- Bros stock price is in a bullish trend.
The Dutch Bros Inc. stock price was in a bullish trend since the start of 2023 making a high at $41.44 after which the bears drove the price to $28 level. Price found support at $28 and started to rise, breaking above the primary resistance at $31.74. The break and close above the resistance provided confirmation for the upward move.
Bros stock recently crossed the 20 day EMA indicating a bullish momentum in price. If the bullish momentum continues, the price can be expected to reach $35 level and further could retest the $41 level.
Dutch Bros released its financials for the 4th quarter of the fiscal year 2022 on february 22, 2023. The report attracted bears. The revenue grew by 48%, but gross profit margin fell from 31% to 24%. According to the base case scenario for valuation, intrinsic value of the stock is $17.39 compared to the current price, Dutch Bros Inc. is overvalued by 46%. A major concern for Dutch Bros is the excessive expansion which may have led to slow down in net income.
Adverse weather conditions in California is likely to impact the quarter 1 result of Dutch Bros as 19% of the units reside in the state of california. The price came down by 1.36% to $31.60 on April 4. The profitability of Dutch Bros has took a hit as the company showed negative free cash flow, negative operating income, negative net income.
Technical Analysis of Dutch Bros Stock:
The RSI curve is moving upwards as price gains bullish momentum and is currently at 53.30. The price established support at $28.55 level and is likely to retest the $35 level.
On a 4-hour basis, the RSI curve crossed the 60 mark after price broke the resistance level of $31. The RSI curve is headed towards the overbought zone and might produce a pullback.
The price crossed the 20 day SMA on the bollinger band on a daily basis indicating bullish pressure in the market. On a 4-hour basis, the price reached the upper band of bollinger band. There is a higher probability for the price to stay on the upper band as the bullish momentum on the stock is strong.
The +DI has crossed -DI in upward, with ADX of 24.05 on a daily basis indicating strong bullish momentum. The ADX is increasing after it broke the resistance on the 1-day chart.
On a 4 hour basis, the +DI started to dip.
Conclusion
The market structure as well as the price action is strongly bullish for Dutch Bros Inc. Future prospects for the stock includes a highly likely bullish rally as it has been expanding.
Technical levels
Major support: $28.50
Major resistance: $36
Disclaimer-
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/04/05/bros-stock-price-predictionwill-bros-retest-40-level-again/