This Small Internet Stock Approaching Point of No Return

One consistent theme in the stock market over the past few years is that small caps simply have NOT been the place to invest.

Many stocks in this asset class have been hot from time to time, but most seem to come up short when it comes to staying power. EverQuote, Inc. (EVER) is one of those stocks that's been red hot for nearly a year, but has fallen hard since its peak above 25 just 6 weeks ago:

Enter EverQuote, Inc. (EVER):

The Q1 breakout above 3-year price resistance near 18 was quite encouraging and EVER did use that momentum to move almost 50% higher from that breakout. Last week, however, EVER dropped more than 14%, closing just 4 pennies above its key 20-week EMA, at 19.18. I view 17.50-18.00 as critical support on this long-term chart. It also can be frustrating to see a stock like EVER sitting almost squarely on its initial public offering (IPO) price from June 2018. Relative strength doesn't favor EVER over the long-term, which is the case with many small cap companies.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.