What's going on with WULF?

Feature Story

Fundamental Analysis

We looked at TeraWulf Inc. about three weeks ago, doing a technical analysis and seeing that the stock was headed in a bullish pattern aimed for a breakout. Unfortunately, WULF fell below my upward trend line, but was able to recover and retest the resistance a few times before today.

Today, TeraWulf Inc has announced that they signed contracts with Fluidstack worth $3.7B over ten years, with options for extensions that could increase total revenue to about $8.7B. Also announced is that Google secured stake as part of the deal by backstopping $1.8B of Fluidstack’s lease obligations and will receive warrants to acquire an approximately 8% equity stake in TeraWulf. This caused the stock to bounce almost 50% on the day, currently sitting at up 47.5% at the time of writing this article with a price of $8.06.

This kind of news while sitting at a bullish signal was a huge help for TERA to make this move to break that resistance line. Take a look at the daily chart below the trend lines are the same from three weeks ago. Take a look at the price action on the right and you can see how this news launched the price above the resistance and is now in great position to test the 52 week high.

What I’d like to see here is a new support get created in this range. Even if the price drops a little from here to the end of the day, 40% - 50% move is huge. What we don’t want to see is a parabolic move up and then an immediate fall back to earth. By leveling out and make normal moves upward, it helps create support, consolidation, and confidence in the stock. Support from $7.70 and up would be a great range.

A Final Note

Congrats to those of you who took a leap into this stock when we last looked at it. What a move! If you didn’t, no biggy there’s always more. If you are interested in getting in, just be careful. As I eluded earlier, a support needs to be made so that the price doesn’t just fall back down. WULF just announced earnings so one can hope their next earnings will show this contract and another big move can be made upward! Good Luck!