- BRCC stock closed at $5.29 with an increase of 2.92% in the last trading session.
- BRCC stock price is currently below the 20,50,100 and 200-day EMAs.
BRCC stock opened at $9.83 during its IPO after which it started its bullish rally in 2022, going from $10 to $34. Since then, the price has been in a strong bearish trend falling below the opening price of the BRCC. The price failed to take support at $14 and fell to $5.80. The price has been consolidating in the range of $5.80 to $8 level and recently broke the $5.80 support, dropping to $4.90.
The price on the 1-Day chart is in a bullish trend. It could retest the $5.80 level and enter the consolidation zone aiming for the $8 level. BRCC has been in major controversy in the past years, which affected its reputation. The controversy between Starbucks and BRCC affected the stock price.
There has been growth in the revenue of the company but the net income is still negative and is increasing as the company tries to expand its business operation. The Wall Street analysts forecast the price to reach $9.79 in a span of 12 months. BRCC insiders have bought more shares than they have sold in the past 12 months, which can be taken as a positive sign.
Technical Analysis
The RSI curve came straight as the price broke the $5.80 support level. The RSI curve entered the oversold zone and started to rise as the price gained bullish momentum. The RSI curve, on the daily basis, is currently at 41.28 and headed towards the 50 mark as the price tries to reach the $5.80 level. On a four hour basis, BRCC price faced resistance at $5.20, which was broken by the last candle. The candle did break and closed above the $5.20 indicating a confirmation for the price to be bullish. If the next candle can break the high of the last candle, we could expect the price to reach $5.80 level.
The BRCC price touched the lower band of the bollinger band to start its upside move. The price is currently near the 20 day SMA of the bollinger band, while on the four hour basis the price reached above the upper band of the bollinger indicating strong bullish momentum.
Conclusion
BRCC stock is strongly bearish on the higher time frame, while on the smaller time frames, the price is trying to make some recovery. If the price can sustain this bullish momentum and break above the $5.80, we can expect the price to reach $8 level. The price action as well as the market structure is bullish on a daily and four hour basis. The technical parameter suggests bullishness in the market.
Technical levels:
Major support : $4.90
Major resistance : $5.80
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.