HUT (Hut 8 Corp) Technical Analysis - January 2025
Technical Overview:
Current Price: $25.43 (-1.66%)
Aftermarket Price: $25.68 (+0.98%)
Key Levels:
- Support: $24.00 (trendline support), $22.00 (strong horizontal support)
- Resistance: $28.00 (recent high), $30.00 (major resistance)
- 52-Week Range: $6.23 - $31.95
Moving Averages:
- 20-day SMA: +5.39% (acting as support)
- 50-day SMA: +1.19%, showing mild bullish trend
- 200-day SMA: +66.00%, indicating strong long-term uptrend
Indicators:
- RSI (14): 52.32 (neutral, slightly bullish)
- MACD: Slightly bullish, showing upward momentum continuation
- ATR (14): 2.37 (high volatility)
- Volume: 5.36M (lower than average 7.25M, indicating lower participation)
Fundamental Overview:
- Market Cap: $2.38B
- Income: $190.24M (strong profitability)
- Sales: $169.59M (P/S ratio of 14.05, suggesting overvaluation)
- Book Value per Share: $7.53 (trading significantly above book value)
- Cash per Share: $0.79 (relatively low cash position)
- Debt/Equity: 0.49 (moderate leverage, manageable debt levels)
- Quick Ratio: 1.00, Current Ratio: 1.00 (adequate liquidity)
Profitability Metrics:
- ROA: 27.22% (strong asset efficiency)
- ROE: 40.01% (high return on equity)
- Profit Margin: 112.17% (strong profitability relative to revenue)
- Gross Margin: 25.28%
Growth Metrics:
- Sales Growth (Y/Y): 179.93%
- EPS Growth (Y/Y): 197.07%
- EPS Next Year: -93.52% (major decline expected)
Insider & Institutional Holdings:
- Insider Ownership: 11.00% (moderate confidence)
- Institutional Ownership: 57.22% (strong institutional backing)
Short Interest:
- 12.19% Short Float
- Short Ratio: 1.40 (potential short squeeze risk)
Bias:
Bullish with caution
- HUT remains in a strong long-term uptrend but is showing signs of consolidation.
- RSI suggests it is neither overbought nor oversold, meaning it could go either way depending on market sentiment.
- Volume decline indicates weaker participation, so a breakout needs confirmation.
- Watch for a breakout above $28 for continuation or a pullback to $24 for a possible bounce.
Higher Probability Trade:
1. Bull Call Spread (Bullish Bias)
- Buy the $26.00 Call
- Sell the $30.00 Call
- Expiration: 30-45 days
- Rationale:
- Profits if HUT breaks out above $26 resistance.
- Controlled risk with a defined profit potential.
2. Cash-Secured Put (Neutral to Bullish Play)
- Sell the $24.00 Put
- Expiration: 30-60 days
- Rationale:
- Generates income while waiting for a dip to buy at support.
- Profitable if the stock stays above $24.
Conclusion:
- Preferred Trade: Bull Call Spread – Higher probability if momentum continues above $26.
- Key Watch Levels: $24 support and $28 resistance.
- Risk Management: Stop-loss if price closes below $24 support zone.
