FuboTV stock: Will Fubo Stock Price Trigger Short Squeeze?

• FuboTV stock price hit new 52 week low at $0.96 and near to oversold zone.
• Fubo stock price trading below the 50 and 200 day EMA showcase downtrend. 
• FuboTV Inc (NYSE: FUBO) failed to meet quarterly EPS estimates. 

FuboTV stock price fell 36.65% in the previous month and hit a fresh 52 week low at $0.96. Fubo stock is trading below the 50 and 200 day EMA showcase positional trend is in downward direction. However, the price is far from the 50 day EMA and it may give a short term pull back to clear out the short positions. 

FuboTV stock (NYSE: FUBO) witnessed a rise in the selling volume, indicating some big investors sold their shares and exited on the higher levels. However over the past couple of days, prices seem to be consolidating in a narrow range and looking for a relief rally. 

FuboTV stock closed the previous session at $1.10 with an intraday decline of -0.90% and market capitalization stands at $230.66 million. At the beginning of January, Fubo stock price gained momentum and managed to push the price above the 50 day EMA. It created hope for a bullish trend reversal and prices rallied about 35% in the short span of time. 

At the beginning of February, FuboTV stock rally halted near $3.28 and witnessed profit booking from the supply zone. Later, prices began to decline by forming lower low swings and lost all the previous gains.

Will FuboTV Stock Recover From The Oversold Zone?

FuboTV stock price broke the important support of $1.62 and also slipped below the 50 day EMA, inviting further decline. At the beginning of March, global market sentiment also turned bearish, which added fuel to the downward momentum. 

Currently, Fubo stock price is struggling to defend the $1.00 level. If the bulls succeed, then the probability of the short squeeze will increase. However, technical analysis suggests that FuboTV stock is in downtrend and sustainability of any short term pull back will be doubtful. 

Why Fubo Stock Price Reacted Negatively After Earnings?

Fubo stock price reacted negatively to the previous quarter earnings despite the company beating the revenue estimates by 11.82%. FuboTV Inc (NYSE: FUBO) released December 2022 quarterly results on February 27, 2023. It reported EPS of $-0.76 vs estimate of $-0.706 and reported revenue of $319.315 million vs. estimated $285.571 million. The company met the revenue estimate but it disappointed in EPS.

Conclusion

FuboTV stock price fell 36.65% in March 2023 and created a fresh 52 week low at $0.96. Currently, Fobu stock price is trying to defend the $1.00 level and has entered into a narrow range consolidation. Technical analysis says, FuboTV stock price (NYSE: FUBO) is oversold and a short squeeze might clear out bearish bets.

Technical levels

Resistance levels : $1.62 and $2.51

Support levels : $0.9600 and $0.5000

Disclaimer

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