RUM stock price gained strong bullish momentum during the start of May and started to rise from the low of $7.70. The stock price surged roughly 46% from the low and formed an annual high of $11.25. The YouTube competitor has seen significant growth since the start of 2023.
The stock price faced strong rejection above $11 which ignited bearish momentum and it started to melt. Recently, Rumble stock price formed support at 7.90 and experienced a short-term pullback toward $8.80. The stock price continued its bearish rally after touching $8.80.
Currently, the RUM price is hovering near the recent support level of $7.90. If bears can push the price below the $7.70 major support level, it can melt toward the $6 level which will cause a downfall of roughly 22.15%. On the other hand, if the RUM stock price can form support near $7.70, it might retest the $8.80 resistance level.
Q2 Results Of Rumble To Be Announced On 14 August
The online video platform will release its Q2 financial results on August 14, 2023. In the last three quarters, the two quarters’ results were positive and successful in beating the estimates. For Q2, the consensus has estimated the revenue to be $18.153 Million. The earning per share estimate is -$0.075.
Rumble is also going through controversies as it believes that free speech is effectively valuable, which encourages its users to openly express their opinions without the fear of cancel culture.
To be fair and transparent, it does not provide a platform to broadcast violent or prurient material. Video platforms seem to become a place for right-wing expressions. Investor seems to be interested in RUM stock due to the passion of the underlying audience.
Will RUM Stock Price Sustain Above $8?
The stock price has plunged below 20, 50, 100, and the 200-day exponential moving average, indicating bearish momentum. Chaikin money flow (CMF) score has been trading below the 0 mark since 16 July 2023. CMF tarded at -0.27 suggesting strong weakness in the market.
The relative strength index is 39.39 indicating bearish confluence over the price. The Bollinger bands have contracted implying a decrease in volatility.
RUM stock price faced rejection from the 20-day simple moving average in the last trading session which indicates the possibility of a meltdown toward the lower band of Bollinger which resides at $7.80.
Conclusion
The market structure and price action of Rumble has turned bearish after the formation of the annual high. The financial result is to be released on 14 August which will also dictate the direction of price.
Technical Levels
- Major support: $7.70 and $6
- Major resistance: $10 and $11
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/2023/08/10/rumble-rum-stock-will-youtube-rival-report-positive-results/