Will the Correction Continue in OKTA?

OKTA stock price (NASDAQ: OKTA) fell 23% in the previous month losing all returns generated in the past few months. A major decline is visible after the release of quarterly earnings.

Okta stock price slipped below the 50 and 200 day EMAs showcasing that the trend reversed in the downward direction. The price is consolidating near the crucial support and the buyers are trying to rebound.

In the beginning of May, OKTA Stock gained momentum and began to rise upward by forming higher highs. It rallied 36% approx. in a short span of time and hit a high at $91.00.

On May 31, 2023 OKTA Inc. released the quarterly earnings. The EPS was reported as $0.22, the revenue was $518 Million. However, despite beating the EPS estimate by 86.28%, the stock prices reacted negatively and opened with a massive gap-down.

Presently, OKTA stock is consolidating in a narrow range between $68.00 to $76.00. The buyers are trying to break the higher range and expand upward.

OKTA stock price closed the previous sessions at $69.35 with an intraday decline of 0.26%. The market capitalization stands at $11.26 Billion.

Will the Downfall in OKTA Stock Halt Any Time Soon?

The OKTA stock price has disappointed investors due to the recent fall. The chart structure is mildly bearish and sellers are more active as compared to buyers.

If Okta stock price continues to decline and drops below the $66.00 support, then it could raise concerns for the long term investors.

On the other hand, if OKTA stock price takes a U-turn and succeeds to regain the 50 day EMA, the buyers’ presence will be confirmed. They will try to retest the previous highs.

Technical analysis suggests that OKTA stock is in the bears’ grip and the probability of upward reversal is low. Therefore, the next phase of the downfall might get triggered after the break-down of the $66.00 level.

OKTA Stock Price Analysis on Weekly Time Frame

OKTA stock price forming a Doji candle on the weekly time frame indicates indecisiveness. If the major market indices perform well, market sentiment may improve and might impact the price of OKTA stock.

The MACD curve is sloping sideways denoting that price is likely to consolidate for some more time. The RSI at 38 near the oversold territory denotes weakness but a short term pull back rally may trigger anytime.

Conclusion

OKTA stock price (NASDAQ: OKTA) corrected 23% (approx.) from the recent swing high, but no signs of recovery are visible. However, the price is near the crucial support and is consolidating in a narrow range which might indicate the formation of a base.

The technical analysis suggests that if Okta stock price drops below $66.00, then more decline is possible.

Technical levels

Resistance levels: $80.00 and $91.00

Support levels: $66.00 and $60.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.