BRC Inc. (BRCC) stock price defended $4.00 support and showed a minor bounce from the lower levels. It surged 5.10% in the previous session and displayed signs of a short-term trend reversal.
BRCC stock is trading below the downward-sloping 50-day and 200-day EMA. It showcases the downtrend and sellers’ dominance on higher levels. However, the buyers are trying to regain the 50-day EMA to bring back the confidence of investors.
In the past 4 months, BRC Stock (NYSE: BRCC) consolidated in the narrow range between $5.00 to $5.85. It tried to form a long-term base near $5.00. But unfortunately in mid-July sellers took over the control and dragged the price below the lower range.
Investors of BRCC stock felt the heat and chose to sell the shares at any cost which invites further decline. Slow and steady prices declined and hit a new multi-year low at $3.91.
On August 10, 2023, BRC Inc. released the quarterly earnings due to which short sellers exited and prices witnessed a short squeeze. But the momentum in BRCC stock price lost near $5.00 and again reverted down.
Will BRCC Stock regain $5.00 in September 2023?
BRCC Stock price eroded the gains generated after earrings and returned back to the yearly lows. However, in the previous session, BRC stock witnessed a sudden rise in buying volume which positively impacted the prices.
It seems like BRCC share is preparing for another attempt to break the $5.00. If the share prices manage to climb above the 50-day EMA then the possibility of reaching $5 will increase.
However, BRCC share will gain momentum when buyers succeed in breaking the $5.85 hurdle. Else, the prices expected to trade range between $4.00 to $5.85.
BRC Stock is bearish but pullback rally is possible
BRC Stock price is bearish on daily, weekly, and monthly time frames. But it looks oversold so a short-term pullback rally is possible. The speculators are active in the BRCC share so the pullback rallies will face difficulty to hold the higher levels.
Therefore, Investors and traders should remain alert if BRCC continues the recovery in the coming month. On the other hand, if the share prices fall below $4.00, another cut of 10% to 15% is possible.
Conclusion
BRC Inc. (BRCC) stock price defended $4.00 support and displayed a minor bounce. It seems like the buyers are preparing for another attempt to break $5.00. However, the probability will increase when BRCC share is able to climb above the 50-day EMA.
Technical levels
- Resistance levels: $5.05 and $5.85
- Support levels: $3.92 and $3.50
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.
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
Source: https://www.thecoinrepublic.com/2023/08/27/brcc-stock-will-brc-stock-price-break-5-in-the-next-attempt/