Image source: Yahoo finance
Daily chart - support and resistance levels
Since March this year, the stock is being traded in a clear range of $20-$30 a share, or in other words between a market cap of $1.25B to $1.9B. Heavy buyers seems to find the level of $20 as an attractive one to continue accumulating. Volume keeps drooping overtime and the stocks seems to be sleeping.
Image source: Yahoo finance
Weekly chart - moving average
If we examine the weekly chart using the 100 days moving average, we can see that the level of $20 a share used to be a resistance level during 2020. In early 2021 the stock broke this level up, and since then, despite the price drop during March this year, it didn't break it down. There for, $20 a share seems to be a strong support level.
Image source: Yahoo finance
Daily chart - what's next?
When is a stock is being traded in a clear range for a long period of time, over 6 months in this case, in a range of $10 a share , the rule of thumb says a significant move is coming. Any move, up or down, will have the potential of the trading range, meaning - the stock can either drop to $10 a share or take off to $40 a share.
Image source: Yahoo finance
Conclusions and future outlook
With a strong support level of $20 a share, assuming it will hold, there is a bigger potential for a move up towards $40 a share, than a move down. The sign will be breaking up the resistance level of $30 a share, backed up with heavy volume. However, if the stock breaks the support level of $20 a share, it will drop towards $10 a share.
Bottom line: more than 50% chance for a move up in the coming weeks/months.
> Any opinions, analyses, prices, or other information contained in this overview are provided as general market information for educational and entertainment purposes only, and do not constitute any investment advice <