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Why This Tech Stock Looks Like It’s Breaking Out

MicroVision Inc. (NASDAQ: MVIS) traded sharply higher Friday morning, running over 40%. The stock is likely moving with other technology stocks such like Advanced Micro Devices Inc. (NASDAQ: AMD) and NVIDIA Corp. (NASDAQ: NVDA) in the wake of Intel Corp.’s (NASDAQ: INTC) first-quarter report. 

MicroVision shares were trading 38.2% higher at $18.16 at last check Friday. mvisdaily4-23-21_1.png

MicroVision Daily Chart Analysis

  • MicroVision looks to have broken out of what technical traders may call a bullish flag pattern.
  • The stock is trading above both the 50-day moving average (green) as well as the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
  • These moving averages may both hold as support levels in the future.

Key MicroVision Levels To Watch

  • The bullish flag pattern occurs after the stock sees a large gain and starts pulling back.
  • The stock typically will trade in a downward channel following the large gain. The line connecting the highs starts acting as a resistance level while the line connecting the lows will start to act as a support level.
  • In theory, the stock is supposed to cross above the line connecting the highs and see a large upward push shortly after.

What’s Next For MicroVision?

Bullish technical traders would like to see the stock break out of the pattern and have a large run up. Following the large run, traders would like to see the stock hold its gains and have a period of consolidation before the stock may continue on its rise.

Bearish technical traders would like to see the stock fall back below the line that connects the highs, and then stay trading in the downward channel. If the price is able to push to the bottom of the channel and fall through the line connecting the lows, it may see a further downward push.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: Why This Tech Stock Looks Like It’s Breaking Out

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