How far can Sea Ltd go after jumping from a bullish pin bar at $50 bottom?

In the days to the earnings release, Sea Ltd (NYSE:SE) showed signs of escaping a bottom of $50. As the company reported quarterly revenue of $2.9 billion, shares rose more than 15%. The revenue was an increase of 64.4% from the prior year. The loss still widened to $580.1 million, from a $422 million loss in the prior year.

Sea Ltd.’s guidance for FY22 was also exciting. The revenue is expected to hit $8.5 billion to $9.1 billion, up 71.8% year-over-year. With the outlook, Sea Ltd looked set for higher levels. 

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Sea could be attracting dip buyers. In the past month, Sea has lost about 20%, taking YTD declines to almost 63%. In the last 6 months, the stock has lost almost a quarter of its value.

Just like the high growth peers, Sea stock is getting hit by a bubble burst of the pandemic boom. However, there are returns to be made if we are to go by the quarter results and technical pointers.

Sea Ltd forms a bullish pin bar at $50 bottom

Technically, a weekly bullish pin bar can be seen towering above the $50 support. The support coincided with extremely oversold conditions, with the RIS hovering around 25. The RSI reading suggests that the bottom had been reached.

With the improved quarterly results, Sea stock is set to go higher. However, watch the $86 resistance as the overall tech sector remains under pressure. Should the stock break above $86, we expected the next target at $123.

Summary

Sea Ltd is a hold up to $86. A robust earnings outlook coincides with bullish technical pointers. Investors have a chance to ride up to $123 if the stock clears the $86 resistance.

Where to buy right now

To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:

1. Etoro, trusted by over 13m users worldwide. Register here >
2. Capital.com, simple, easy to use and regulated. Register here >

*Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.