Is Unity A Buy At Dip For October Month, U Stock Forecast?

Is Unity A Buy At Dip For October Month, U Stock Forecast?

Unity Software’s stock price is witnessing selling pressure on the charts after it slipped below the 200-day EMA. The bears have regained control at the upper levels and made continuous efforts to drag the price back the the previous volatile zone.

The last quarter saw a reversal in the Unity stock that turned the price trend in favor of buyers and the price surge from a low of $25 to a high of $50 thus gaining a 100% return in a single quarter. The U share price surged breaking above the 50-day and 200-day EMA.

The current quarterly earnings stood as a surprise of 189% and the revenues were also better than expected. However, the stock tumbled down for profit booking despite the good results. 

The current quarter is witnessing a bearish trend at the moment as U’s price slipped below the 200-EMA. Thereafter, bulls tried to recover but ended up after the retest of the 200-day EMA.

Unity stock derivatives data analysis states that the current implied volatility in the market is 56.77% with an increment of 2.44% in the last trading session. The at-the-money strike price has 931 open contracts on the put side and 205 open contracts on the call side indicating the dominance of buyers at the current level.  

Unity Stock Price Nearing A Round Level of $30

Unity stock currently trades at $30.71 with a surge of 0.49% in the last session. The U share price has wiped out more than 5% in the last week. The stock price has reached a 6-month low and round level of $30 after which it might get the buyer’s support. 

 The recent decline has again dragged the stock to the previous volatile zone below the $40 level. The price trend has gone sideways and directionless at the moment. The price may hover in the range of $25 to $39 until it decides on a clear trend. 

Technical Indicators Signal A Bearish Outlook In The Short-Term

The overall technical indicators including RSI and MACD opinion rating for the stock is a 24% sell with a weakest short-term outlook on maintaining the current trend.  

Conclusion

Unity Software’s stock price is facing selling pressure after falling below the 200-day EMA. The price had surged by 100% in the last quarter, breaking above the 50-day and 200-day EMA, but dropped after the earnings report. The current quarter is bearish as the price slipped below the 200-day EMA again and reached a 6-month low of $30.71. The stock is now in a volatile zone and may trade sideways in the range of $25 to $39 until a clear trend emerges.

Technical Levels

Disclaimer

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

Source: https://www.thecoinrepublic.com/2023/09/29/is-unity-a-buy-at-dip-for-october-month-u-stock-forecast/