Celsius Holdings (CELH) stock chart pattern points to more sell-off

on Jun 18, 2024
  • Celsius Holdings share price has been in a steep sell-off recently.
  • There are concerns about the company’s growth in the United States.
  • The stock has formed a double-top chart pattern.

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Celsius Holdings (NASDAQ: CELH) stock price has suffered a harsh reversal in the past two months as investors remain concerns about its growth continued. It retreated to a low of $56.70 on Monday, its lowest swing since February 13th. 

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Growth concerns remain

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Celsius Holdings, one of the fastest companies in the US, has come under pressure as investors remained concerned about its slow growth. The sell-off intensified after Pepsi, its distribution partner, lowered its guidance.

The most recent financial results showed that Celsius Holdings was doing well even as its US growth slowed a bit. Its quarterly revenue rose from over $259 million in Q1’23 to over $355 million in Q1’24. 

As a result, its net income jumped from $41.2 million in Q1’23 to over $77.8 million in Q1’24 and the company hopes that the trend will continue. 

Analysts have had mixed opinions about CELH stock. In a recent statement, analysts at Piper Sandler noted that the company’s growth is sustainable in the long term. They believe the stock could rebound to about $90 in the coming months. That implies a 50% increase from the current level. Their statement noted:

“We continue to believe in CELH’s sustainable, volume-driven sales growth, which is decelerating from its recent hyper-growth levels to still very robust growth, just as we had expected, but we continue to see a long runway of further growth in both the US and internationally.”

Most analysts have a bullish outlook on the stock. Some of the most notable are from Roth, TD Cowen, Maxim Group, and Jefferies. However, some analysts believe that Celsius Holdings is highly overvalued and that it will continue falling.

The average estimate of the Celsius Holdings stock price is $91.24, which is significantly higher than the current $61.1. As I have written before, I believe that the company has more room to grow internationally because of its popularity in the US and its partnership with Pepsi.

Celsius Holdings stock price analysis

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CELH stock

CELH chart by TradingView

Turning to the daily chart, we see that the CELH share price has crashed hard in the past few weeks. This crash accelerated after the stock formed a double-top pattern at around $100. In most cases, this is one of the most bearish chart patterns in the market. It has crashed below its neckline at $68.88.

The stock has also plunged below the 50-day and 200-day Exponential Moving Averages (EMA). Positively, it has formed a small doji candlestick, a popular reversal sign. Therefore, the stock will likely rebound a bit and then resume the bearish trend. If the double-top pattern works well, it means that it could crash to as low as $35.

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