AI stock price fell 10% in the after-hours session. It is expected to open a gap down and might display a bearish pattern. C3.ai stock price corrected 26% in August and eroded a big portion of the market capitalization.
C3.ai stock price drops below the 50-day EMA showcasing that the short-term trend has reversed down. However, the 200-day EMA still placed higher which will act as a strong support for the bulls.
AI stock price performed well in May, June, and July and generated nominal returns for its investors.
At the beginning of August, C3.ai share price attempted to break the $45.00 hurdle. But the attempt was not successful and prices reverted down. It began to decline by forming lower lows and broke the crucial support of $30.00.
Later, C3.ai Inc. share price consolidated for a few days and tried to form a short-term base. But the quarterly earnings have negatively impacted the prices so bears might try to drag it further down.
AI stock price closed the previous session at $31.46 with an intraday rise of 0.10%. The market capitalization stands at $3.71 Billion.
AI Stock Price Reacted Negatively After Earnings
AI stock price is in a correction phase and short-term pullback is facing difficulty to hold the higher levels. It formed a bearish pattern and the dominance of sellers is visible.
C3.ai Inc. released its quarterly earnings on September 6, 2023. It reported an EPS of -0.09 and revenue of $72.362 Million. The company beats the EPS estimate by 48.03% and the revenue estimate by 1.12%.
Despite that, AI reacted negatively and is likely to open the gap down in today’s trading session. The analysis suggests prices are near the demand zone so it will be risky to build fresh shorts.
Will C3.ai Stock Price Bounce Back?
C3.ai share price (NYSE: AI) formed a Doji candle on a weekly time frame. It indicates indecisiveness and prices lack direction.
Till AI share price sustains above $24.00 a short-term bounce back in September month is possible. However, the confidence of the buyers will return when prices are able to climb above the 50-day EMA.
On the other hand, if the AI share price drops below $24.00 then more downside will open. It will be interesting to see how prices react in the coming weeks which will decide the next direction.
Conclusion
AI stock price fell 10% in the after-hours session and investors reacted negatively after earnings. However, C3.ai share price will open near the crucial support so buyers will try their best to rebound. The analysis suggests that till AI shares hold $24.00 the possibility of bounce back is high.
Technical levels
- Resistance levels: $44.00 and $49.00
- Support levels: $24.00 and $16.50
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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/09/07/ai-stock-tumbled-10-is-more-downside-possible-in-c3-ai-stock/