Quantumscape Corp (NYSE: QS) Stock 2023 Rally – Is it about Time to Sell QS Stock Price at Resistance?

QS stock price has been surging with maximum buying within the last four consecutive trading sessions.
QS Share price has successfully recovered above 20 and 50-EMA and now its preparing for 100 and 200-days Daily Moving Average.
Quantumscape Corp (NYSE: QS) stock price has broken out of an interesting falling channel over the daily time frame chart.

QS stock price has been declining through a descending parallel channel since August 2022, over the daily time frame chart. However, bulls are accumulated and now QS share price has successfully registered its breakout from the falling parallel channel. Meanwhile, QS stock has also broken out of the resistance level at $7.00 and is now preparing to sustain at the current level. QS share price needs to maintain the current accumulation rate to sustain at the current level.

Quantumscape Corp is a EV Batteries startup and is trying to establish itself among the market leaders in EV batteries manufacturers around the globe. Investors in Quantumscape Corp have been waiting for the stock price to surge as it has been continuously falling from the start of 2023 but it seems like QS share price may rise towards its maximum recovery over the daily time frame chart. However, some analysts speculate that QS stock price may start slipping any time now from $7.50 level as a new resistance or threshold.

QS stock price was at $7.12 and has gained 6.91% of its market capitalization and is still thriving to surge with strong uptrend momentum. However, accumulation rate is still below average and needs to grow for QS share price to sustain and remain in the current trend.

QS stock price has successfully broken out of the descending parallel channel over the daily time frame chart. Now buyers are trying to provide QS shares the required push to resolve its sustainability issues.

Trading volume is still below average and needs to grow for QS share price to continue its uptrend momentum over the daily time frame chart. Meanwhile, QS Share price has successfully recovered above 20 and 50-EMA and now it’s preparing for 100 and 200-days Daily Moving Average.

QS Stock Price Entering Overbought Territory on RSI

QS stock price has been trading inside a declining parallel channel and has now broken out of the channel to recover over the daily time frame chart. However, technical indicators suggest that QS share price is about to be overbought in the day’s trading session.

Relative Strength index showcases the uptrend momentum of QS share price. RSI is at 62 and is heading towards the overbought territory. MACD exhibits strong upward velocity of QS shares. The MACD line is way ahead of the signal line after a positive crossover. Investors in QS share price must pay attention to the trading volume and technical indicators as analysts speculate for QS share price to return before $8.00.

Summary

QS stock price has been declining through a descending parallel channel since August 2022, over the daily time frame chart. However, bulls are accumulated and now QS share price has successfully registered its breakout from the falling parallel channel. Now buyers are trying to provide QS shares the required push to resolve its sustainability issues. However, technical indicators suggest that QS share price is about to be overbought in the day’s trading session. Investors in QS share price must pay attention to the trading volume and technical indicators as analysts speculate for QS share price to return before $8.00.

Technical Levels

Support Levels: $6.00 and $5.50

Resistance Levels: $7.65 and $8.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and 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