DailyPlay – Coupa Software Inc (COUP) – January 14th, 2022

The bearish DailyPlay for Friday, January 14th is Coupa Software Inc (COUP). COUP is part of the Technology sector that is currently lagging against the overall market.

Technical View

• Recent retracement higher provides a good risk/reward bearish entry point
• Bearish 1M and 6M trends. 
• Very weak Technical Score (2 out of 10)

Fundamental View

• Negative EPS and high valuation (30x P/E) in a hiking interest rate environment makes COUP vulnerable for further declines. 
• The application software sub-industry continues to underperform the overall market on a relative basis. 
• Earnings: Mar 15, 2022 (60 days)

As this is a Credit Spread, look to take profits at 50% gain and cut losses at 100%:

Take Profits: $1.85 Debit

Stop Loss: $7.40 Debit

View COUP Trade