Sezzle stock jumps after Q3 earnings exceed estimates, positive 2026, 2027 guidance delivered
Sezzle shares surged after reporting better-than-expected Q3 earnings and issuing positive guidance for 2026 and 2027.
We considered entering a buy position based on the clear positive news of strong earnings and positive guidance, accompanied by a surge in trading volume reaching 1.75 times the 20-day average, as the current stock price is positioned near the 20-day resistance line, making an attempt to break through the resistance highly likely.
As volume flows in and an attempt to break through the resistance line is likely in this section, if the price breaks above the resistance level around $141.72 and the upward trend continues, we will take profit upon reaching the take-profit target of $141.72. Conversely, if the stock price momentum collapses and breaks below the support level of $110.08, we will immediately execute a stop-loss when the stop-loss price is touched.
At the time of entry, technical indicators show an RSI (14) of 49.4, moving averages in a bullish alignment (short-term above long-term), trading volume at 1.75 times the 20-day average, and a -7.3% rate of change over the past 7 days.
At the initial prediction timing, trading volume flowed in at 1.75 times the 20-day average near the 20-day resistance line, making an attempt to break through the resistance line seem likely. However, exceeding the take-profit target of 141.72, the actual resulting return recorded 13.4%, significantly outperforming the predicted return of 6.0% and receiving an OVERHIT rating. We confirmed that favorable factors—such as an earnings beat in Q3 and positive guidance for 2026 and 2027—combined with a bullish alignment of moving averages and increased volume signals to drive much stronger buying pressure than the market anticipated.
In this trade, we confirmed that when clear earnings positive catalysts and a surge in trading volume (1.75 times the 20-day average) accompany a section, the upward momentum following the breakout of the resistance line can be much greater than expected. In future similar breakout phases, when strong trading volume inflow is combined with positive guidance, rather than simply setting a conservative target price, we will reflect a strategy in the next trade of remaining flexible while keeping the possibility of trend continuation open.