ChargePoint Holdings Inc. (NYSE: CHPT) CHPT stock price is below the significant moving averages. Moreover, the CHPT stock is trading below neutrality and is heading toward the oversold region. Meanwhile, CHPT stock price noted a bounce over 7% due to the positive brokerage outlook by analysts of Oppenheimer which suggests outperform rating, and the market reacted positively. Amidst the positive outlook, CHPT share price has continued to lose the gains inside the falling channel. The bulls tried to hold the selloff multiple times, unsuccessfully. Meanwhile, CHPT stock price continued to show correction and did not hold the gains near the crucial support zone of $4.00.
After the Q1 earnings results, CHPT stock price continued to showcase correction and did not absorb the selling pressure. Moreover, the price action indicates that follow-on selling will continue and CHPT stock may retest the channel lows of $3.0. At the strike price of $3.50 and a massive open interest of 4012 hundred shares on the put side shows the immediate support zone, whereas at the strike price of $4.00, a massive open interest of 4153 hundred shares on the call side shows the resistance zone.
At press time, CHPT stock price is trading at $3.64 with an intraday gain of 7.69% showing reversal in the yesterday trading session. Moreover, the trading volume increased by 1.90% to 18.90 Million and the market cap is $1.311 Billion. However, Analysts have maintained a buy rating with a yearly target price of $10.49 suggests an outperform rating.
ChargePoint Holdings, Inc. operates as an electric vehicle charging network provider. It designs, develops and markets networked electric vehicle charging system infrastructure and its Cloud Services enable consumers the ability to locate, reserve, authenticate and transact electric vehicle charging sessions. The firm provides an open platform providing real-time information about charging sessions and control, support and management of the networked charging systems.
Will CHPT Stock Attain Follow on Buying?
On the daily charts, CHPT stock price is inside the falling parallel channel and has been losing momentum. However, sentiments may have changed due to the surge that happened in the overnight session which trapped the sellers. Moreover, in case of follow-on buying, short covering would lead to a sharp move toward $4.00, a positive sign for the bulls. However, bulls must attain a sharp momentum to escape the hurdle of $3.80 to surpass the hurdle.
The RSI curve stayed in the oversold region and showed a bearish divergence, highlighting a negative outlook.
The MACD shows a bearish crossover and red bars on the histogram suggests a further downside ahead.
Summary
CHPT stock price is trading inside the falling parallel channel and has showcased bearishness in the past few sessions. Furthermore, the price action indicates that sellers continued to gain traction, adding short positions which results in slippages below $4.00. However, in case of buying, a short covering move toward $4 is anticipated in the coming sessions.
Technical Levels
Support Levels: $3.50 and $3.30
Resistance Levels: $3.80 and $4.00
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/18/chpt-stock-nyse-chpt-surged-7-are-shortsellers-trapped/