New Stake for Tinder's Parent Offers Opportunity for Aggressive Traders
Activist investor Starboard has acquired a position in Match Group, the parent of dating platforms Tinder, Hinge and Match.
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Media reports Tuesday noted that activist investor Starboard has acquired a position of 6.6% of the shares of Match Group MTCH. Match has a portfolio of brands including Tinder, Hinge, Match and other brands, which are designed for users to find a connection. Starboard wants Match to "fix" Tinder issues and margins or go private.
Let's check out the charts and indicators of MTCH to see where the stock price could go.
In this daily bar chart of MTCH below, I can see the price action through Monday's close. Prices are trading about 8% higher in the pre-market and that will represent a gap higher open. MTCH is trading above the 50-day moving average line and is likely to test and maybe break the declining 200-day moving average line today. The trading volume has been active since November. The On-Balance-Volume (OBV) line has moved sideways since November. The trend-following Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line on the upside for an outright buy signal.
In this weekly Japanese candlestick chart of MTCH below, I can see that prices made a long and painful decline before turning a bit sideways and started to show new accumulation (buying). Declines to the $30 area have found buying interest (support). MTCH should test the 40-week moving average line today and could close above it by the end of the week. The weekly OBV line shows a decline for 2024 but the indicator may be making a low in July. The MACD oscillator is below the zero line but edging higher.
In this daily Point and Figure chart of MTCH below, I can see that prices reached a downside price objective in the $28 area.
In this weekly Point and Figure chart of MTCH below, I can see a potential price target in the $39 area.
Bottom line strategy: I recommended MTCH back on July 17, 2023, but traders would have been stopped out as the base pattern needed more development and downside testing.
I have no special insights about what Starboard is doing but aggressive traders could trade MTCH from the long side risking to $30. Stay nimble and do not overstay your welcome.
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