TOST wait for the lowToast, Inc. Class ABATS:TOSTvf_investmentHi traders, Strategy: Support Retest & Divergence Confirmation The Setup: Waiting for the Secondary Low The stock has been in a steep descending channel since its 2025 highs (~$45.00). While the recent bounce looks strong, your chart identifies a crucial "liquidity hunt" lower before the real move starts. The Logic: You are looking for a Higher Low or a Double Bottom in the support zone. This allows late sellers to be washed out and provides a safer entry with a tight stop. The Divergence: The goal is to see price enter the $24.00 – $25.50 zone while the RSI (14) stays above its previous oversold trough (the purple line on your chart). This hidden bullish strength often precedes a massive trend-line breakout. Execution Parameters The Entry Zone Be patient and wait for a pullback to the $24.50 – $25.50 range. This aligns perfectly with the 52-week low ($24.35) and your red structural support box. Entering here ensures you aren't buying the "top" of a bear market relief rally. Risk Management (Stop Loss) Place your stop loss at $23.75. A weekly close below this level would mean the stock has broken its multi-year floor, and the "bounce" thesis is dead. Primary Target (TP1) The first major objective is $35.30. This is your red resistance line and aligns with the 200-day moving average and the previous "breakdown" point from early 2026. Secondary Target (TP2) If the descending yellow trendline is broken, the next structural target is $40.00+, where the stock faced heavy selling in late 2025. Market Context (April 2026) The "Why" Behind the Dip: TOST recently missed Q4 EPS estimates despite growing revenue by 22%. This created the initial drop. The market is now looking for "proof of profitability." The Opportunity: By waiting for the support zone, you are positioned to capture the shift from "growth at all costs" to "profitable scaling," which is the current theme for software stocks this spring. Risk/Reward Summary Risk: ~$1.25 per share (using a $25.00 entry). Reward: ~$10.30 per share (to the $35.30 target). R/R Ratio: 1:8 This is a very disciplined setup. Chasing at $29.00 gives you a 1:1 ratio; waiting for $25.00 gives you an 1:8.