Unity Software Inc. is currently struggling to break the bearish trend and aims to establish a bull run by the release of next earrings. The company engages in the developing video gaming software and also provides software solutions along with other related services regarding augmented and virtual reality devices. The investors placed their bets on the software company to be the future of Metaverse, rather, incurred losses in the recent downtrend. Needless to say, the recent loss adds to the one-year loss to shareholders of 66%.
Unity Software Inc. Earned or Lost?
Unity Software Inc. will be showcasing strength as the date of next earnings release approaches. For the past three disclosures, the company reported negative figures indicating weaker financials for future growth. The estimates are placed at negative $0.028 for the earnings per share. The previous EPS came with a pessimistic surprise of 216.54%, as the reported EPS was $-0.014, whereas the estimated was $0.012.
The estimated revenue for Unity Software Inc., is $481.462 million which is about 10% higher than the previous estimate of $437.859 million. The estimated revenue is higher from the previous reports because the reported revenue for the last quarter was 3% higher than the estimate. Increase in revenue hints at plans for expansion by the company. As the date nears, the U stock price can pick up bullish momentum and prepare for the bull run.
U Stock Price Action Prognosis
U stock price forms a consolidating pattern after dropping from the recent peak. The range bound movement establishes a bearish momentum in the market. The trading volume suggests a heavy selling action by the investors. The Bollinger Bands contract and move parallel matching the sideways price movement. The EMA ribbon floats above the current price action displaying bearish attributes for Unity Software Inc.
The contained movement by U stock price nosedived after being rejected at the resistance near $32.70. The current price action takes place at the initial level of Fib retracements. The projected rally in the long term can breach the levels of retracement and reach beyond $40.00. The MACD forms a negative cross and records seller bars in the negative region, to reflect the recent selling action. The RSI moves around the 40-range to display present seller dominance in the market.
Conclusion
Unity Software Inc. is struggling to breach the bearish trend prevailing in the market. The price action hints at a bullish transformation near the earnings release date. The present market conditions indicate the existence of a sellers’ regime and a downtrend to lead U stock price. The projected bull run can aim for price level beyond $40.00. The holders can rely on the support near $26.09.
Technical levels
Support levels: $26.09 and $23.70
Resistance levels: $32.70 and $42.90
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 assets 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/2023/04/28/u-stock-price-unity-software-inc-is-a-future-bet-of-metaverse/