EVGO stock price fell 13.61% in October and hit a 52-week low at $2.86. It faced resistance at $4.00 and reverted down. Evgo Inc. stock price is in a downtrend and trading below the 50-day and 200-day EMA. The short sellers look highly active so it increases the risk of squeeze.
In previous quarter earnings, EVGO stock reacted positively and shot 21% in a single day. Buyers attempted to break out of the $6.00 hurdle to bring back the confidence of the long-term investors. But sadly, the attempt failed and the bulls failed to give the follow-up momentum.
Gradually, the price began to decline by forming lower lows and eroding all the previous gains. It indicated that the previous up move was a bull trap and speculators’ activities are high in the stock.
Evgo Inc. is in the business of DC fast charging stations that will be needed for electric vehicles.
So, in the coming future, if the financials of the company improve then, one might see an upward reversal in the stock. However, at present, the stock is in bears’ grip and no signs of recovery are visible.
EVGO Stock Price May Show Pullback?
EVGO stock price is in a correction phase and sellers look more active as compared to buyers. The short-term pullback will not be reliable until buyers are able to break out of the $4.27 hurdle.
Evgo share price has continuously declined so a narrow-range consolidation is expected in coming months.
If the consolidation happens, then it might be an indication of the base formation. On the other hand, if the price trades below $3.00, then more downfall can be seen.
Evgo Inc. Stock Price Bearish on Multiple Timeframe
Evgo Inc. stock price is bearish on a daily, weekly, and monthly time frame. The broader market indices and other EV sector stocks are mildly bearish. So, it may negatively affect Evgo shares for a short period of time.
The RSI at 34 pointing south denotes weakness. But if the price declines further, then RSI will enter into highly oversold territory which will increase the probability of pullback.
The MACD curve reverses upward and may reach the zero line. It indicates the downfall has taken a halt and a relief rally is possible.
Conclusion
EVGO stock price fell more than 13% in the current month but still no signs of recovery are visible. The stock broke the crucial support of $3.50 and hit a 52-week low.
The analysis suggests Evgo Inc. shares are oversold and may consolidate for some time.
Technical Levels
- Resistance levels: $3.50 and $4.27
- Support levels: $2.50 and $2.00
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.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/13/evgo-stock-price-below-3-00-will-it-decline-more-or-recover/