Sea Ltd (NYSE:SE), recognized as one of Schaeffer’s top selections for 2025, has experienced some fluctuations since reaching a three-year peak of $199.30 on September 11. The stock was noted to be down 0.7% at $181.34 today, touching a low of $176.00 earlier — a price point that looks to be forming a solid support area. A rebound is likely as the recent decline aligns with a historically positive trendline.
According to Schaeffer’s Senior Quantitative Analyst Rocky White, the stock is currently within 0.75 of the average true range (ATR) of the 50-day moving average, after spending over 80% of the last ten days and two months above this average. This scenario has occurred three times in the past three years, with the stock being up one month later 71% of those times, averaging a gain of 3.5%. A similar increase could see shares reach $187.68.
While short interest has been decreasing, it still accounts for 5.2% of the stock’s float. Covering these short positions would take over five days at the current trading volume of SE, indicating significant potential buying pressure.
