Unity Software Inc. U stock price corrected approximately 28% from the recent swing high at $40.00. It declines by forming lower lows and erodes a large portion of its market capitalization.
Unity stock price faced sharp rejection from $40.00 and reversed the short-term trend in a downward direction. The price is trading below the 50-day and 200-day EMA which triggers negative sentiments and invites further decline.
U stock price declines with a high selling volume indicate some long-term investors might be taking an exit from higher levels. Therefore, the recent downfall looks reliable and sellers are now dominating the higher levels.
The price pattern of the stock is bearish but it shows a steep fall. So, a narrow-range consolidation or a short-term pullback rally is possible. However, until the price breakout of the downward sloping takes place, it will lack bullish momentum.
In the last 3 months, Unity Software stock traded with a bearish bias and eroded the majority of its previous gains. At present, the stock is near the demand zone and buyers may come forward to halt the downfall.
Will the Downfall in the U Stock Take a Halt Soon?
U stock price is in a correction phase and has corrected a lot but still no signs of recovery are visible.
Meanwhile, the broader market indices look mildly bearish which hurts the market sentiment. If the broader market index continues to fall, it might affect the Unity stock for a long period of time.
The price action shows till the U share price is trading below $40.00, it is expected to remain in a bearish grip. The pullback rallies will remain doubtful and may trap the short-term bulls. The analysis suggests that the downfall in U stock may take a halt near $25.00 and the price may enter consolidation.
Unity Stock Price Fell for Four Consecutive Weeks
Unity stock price fell for four consecutive weeks. It formed a bearish pattern on multiple time frames. However, the price is near the long-term demand zone so sellers might face difficulty in pulling the price further down.
The MACD curve slopes down and displays a negative crossover. The histogram bar in red indicates the strength of the bears and shows more downside is possible. On the other hand, the RSI at 27 denotes oversold territory so the risk of squeeze is high.
Conclusion
Unity Software Inc. U stock price corrected 28% from the recent swing high. It showed a steep fall and formed a bearish pattern on multiple time frames. The analysis suggests the downfall in Unity stock price may take a halt near $25.00 and enter consolidation.
Technical Levels
- Resistance levels: $36.00 and $40.00
- Support levels: $24.74 and $21.00
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.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/06/unity-stock-price-fell-8-will-u-stock-price-hit-52-week-low/