The Long Investor - $ASTS - Video -

Good morning, everyone. Vojtech here, and today we will take a look at $ASTS, because most of us love this stock and believe in the company and the potential it has. This price action has been painful, and I feel for everyone who is frustrated now. It was a harsh pullback. But when we zoom out, I will talk today about why we should not be worried, and about how in reality the count is perfect, perfectly normal and textbook. And this is, in my opinion, a life-changing opportunity. If you know at least something about the company, you should be buying over here for the sake of your family. I’m not joking. So let’s get into it.

I will go through the entire chart. So: the IPO over here, an initial push and a slow bleed. A slow bleed is always bad when you’re buying it, because you are buying the falling knife. Then the insane bump. We had our wave one and then we consolidated. We bounced for wave one, then went for the wave two pullback. Although it is very, very deep, and I don’t like such deep wave twos, in the big picture of the wave count I need to admit that this, in my opinion, is a valid wave one and two.

We pulled back and reclaimed the 50-week moving average. If we go to the daily chart, it is beautiful how we went sideways and consolidated until we touched the 200-day moving average. Some of you could now tell me that this is a slow bleed as well. And it is. If you were buying every bounce and every dip, you would end up frustrated and selling. But a bottom was created over here, and a bottom was created here as well. It made sense for us to go sideways and just a bit down, because we were catching up with the uptrending 200-day. This is a sideways correction, and wave two finished on 0.5, which is standard for wave two but on the shallower side, and that means it is a pretty bullish pullback. If we had gone to 0.618 or 0.786, it wouldn’t be as bullish as finishing on 0.5.

So we bounced from wave two, reclaimed the moving averages and had the run-up. Of course, we were buying at these levels. I do not remember now if it was over here or over here, but somewhere around here. So: one, two, three, four, five, a textbook wave three. Wave four is deeper than usual. By no doubt we have an A, B, C deeper than usual for a wave four. Then the wave five push, which means primary wave three. Once again: one, two, three, four, five, textbook. This pullback isn’t as textbook. There is an A, B, C, but arguably we could find more waves. I think it is acceptable.

And then the run for wave five. We can already see signs of weakening. We have this ending-diagonal-ish structure. We pushed out to the upside, and then a steep correction. If you search for my $DKNG video, there was a very similar structure. At wave five we had a leading diagonal, and I believe $DKNG also broke out and then pulled back sharply. That is what is happening over here. And then an A, B, C, and this is very unusual. I am not surprised we got confused, because an A, B, C expanding flat is very unusual on such high time frames. It is pretty usual on a daily or hourly time frame, and you can see it pretty often in wave four corrections, but seeing it on a weekly chart is not usual, and institutions knew what they were doing. This was painful.

Right now we are at 0.786. We are approaching the 200-week moving average, the 50-month moving average, this level right here, and the liquidity right here. So by all means this is a [bullish?] level. And if we look at what happened yesterday, we had a push to the upside and then ended red. If I was to pull out my crystal ball, I would say that we are still going for this level, maybe even [$31?] for the 50-month. But I think this is already a good place to be buying. Then the 200-week and the 50-month, if it happens, and I think you will be fine for the next years. I can assure you, you will be grateful in a few years when you zoom out, and this will become just a small part, like this over here.

Let me adjust this. We will have the nice 1.618, wave three at $239 to $240, and then $367 for wave five. So it is about patience. I understand it is not easy when you buy the dip and it keeps on dipping. It is part of the game as well. Everyone’s strategy is different. I think it made sense to DCA on the way down, but I understand that for some it is easier to simply sit on your hands and add on the brutal washouts. Both strategies have their place in investing and in trading, and you should not be ignoring this level.

I am still very bullish on $ASTS. I will be adding over here as well. I think it is an incredible opportunity, and I do not want to steal from my family. So do your own due diligence and do your research, so you are able to hold easily. That is an inherent and needed part of investing. You always need to have conviction in what you hold, because otherwise you will end up frustrated, you will end up selling, and then it is going to run without you, just a while after you sell. Market makers know what they are doing. They know how our mentality works, and they know that it is time to push the price to the upside when the majority sells.

So that’s it, guys. Zoom out. The future is bright for $ASTS. See you guys tomorrow. Take care.

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