Important points
- Mobileye stock fell 28% this week after investors were unimpressed by the self-driving company's presentation at the consumer electronics trade show CES in Las Vegas.
- After bottoming out in mid-September, the stock has been trending up in an orderly upward channel, but recently found significant resistance near the pattern's upper trendline.
- Investors should keep an eye on key support levels on Mobileye's charts near $15, $12, and $10.50, as well as a key overhead area near $24.
Mobileye Global (MBLY) stock lost more than a quarter of its value this week after investors were unimpressed with the self-driving company's presentation at the CES consumer electronics trade show.
bloomberg intelligence Analyst Jake Silverman said CEO Amnon Shashua's speech at the much-anticipated event in Las Vegas did not provide any updates on commercial success, and that the company's 12 It said it likely disappointed investors after announcing promising driver-assistance technology at a capital markets day in March.
The Israel-based company's stock price fell last year as sales were weighed down by customers with excess inventories and broader industry slowdowns in China and Europe amid uncertainty over global self-driving regulations. lost more than half.
Mobileye shares fell 7.7% to $15.65 on Friday, following a broad decline in U.S. stocks. The stock price fell 28% in one week.
Below, we take a closer look at Mobileye's chart and use technical analysis to identify key price levels worth paying attention to.
Ascending channels in play
After bottoming in mid-September, Mobileye's stock price has trended upward in an orderly ascending channel, with a chart pattern consisting of two parallel upward sloping trend lines.
However, more recently, price has encountered overhead resistance near the pattern's upper trendline and nearby 200-day moving average (MA). Additionally, Wednesday's 13% drop occurred on the highest volume since early August last year.
It is also worth paying attention to the speed of the decline, as the Relative Strength Index (RSI) fell from overbought to below the 50 threshold within a week.
Let's identify key support levels to monitor if the stock stays in a long-term downtrend, and also point out key overhead areas worth monitoring in the event of a bullish reversal.
Important support levels to look out for
A convincing breakdown below the ascending channel's lower trendline and the 50-day moving average could send the stock initially down to around $15. This level on the chart could provide support near the horizontal line connecting the late August countertrend peak, the September peak, and the mid-November pullback low.
A sell below this level would affect the $12 level, and the stock could attract buying interest around a series of prices near the mid-October bottom on the chart.
Further downside could lead to a drop to the $10.50 level. Investors may try to pick up stocks in this space on the chart near the stock's notable September swing lows.
Key overhead areas to monitor
While the stock price recovers, investors should remain cautious around the $24 level. Traders looking to take advantage of the stock's recent volatility may look for an exit point near the confluence of resistance from the notable February bottom and the upper trendline of the ascending channel.
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