Gevo Stock Looks Like It's Ready To Break Out Of A Pennant Pattern
Gevo Inc. (NYSE: GSAT) shares are trading higher Monday after the company signed a memorandum of understanding to support the production of sustainable aviation fuel and other low carbon-footprint hydrocarbon fuels.
Gevo was up 2.46% to $6.67 at press time.
Gevo Daily Chart Analysis
The stock is trading in what technical traders call a pennant pattern and looks to be nearing the end of the pattern.
The price was condensed between narrow in highs and lows and is now reaching a point where it doesn't have much room to move inside of the pattern
The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
The 50-day moving average may act as a place of support, while resistance may be found near the 200-day moving average.
The Relative Strength Index (RSI) has been moving sideways and now sits at 52 on the indicator. This shows buying and selling pressure has been relatively equal throughout the past few days.
What’s Next For Gevo?
Bullish traders want to see the stock break above pattern resistance and begin to push higher. This could signal the stock is breaking out and ready to stop consolidating. Bulls then want a large bullish move and another period of consolidation after the move.
Bearish traders would like to see the stock fall below pattern support and begin to hold it as a place of resistance. This could hint that the stock is ready to see a further downward push in time.
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