C3.AI Inc. (NYSE: AI) shares were trading higher Monday.
The company is set to announce second-quarter earnings Dec. 1.
C3.AI was up 2.54% at $48.47 at last check.
C3.AI Daily Chart Analysis
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The stock pushed higher toward pattern resistance in what technical traders call a falling wedge pattern. The stock has fallen lower since the gap higher this morning.
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Narrowing highs and lows have pinched the stock between support and resistance, and may continue to act as price barriers until the price can break through either support or resistance on an above average volume day.
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The stock trades above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
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The 50-day moving average may hold as an area of support, while the 200-day moving average may act as a place of resistance.
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The Relative Strength Index (RSI) has been building higher lows and now sits at 55 on the indicator. This shows that there is now more buying pressure than there is selling pressure in the stock.
What’s Next For C3.AI?
Bullish traders are looking to see the stock form higher lows and go on to break above pattern resistance. This could show the stock is making a long-term trend change and be starting an uptrend. Bulls would also like to see the stock break above the 200-day moving average for sentiment to turn more bullish.
Bearish traders are looking to see the stock be unable to break above the resistance level and for the stock to start falling back toward support. Bears are then looking to see the stock fall below the pattern support and break down lower.
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