- ChargePoint Stock (NYSE: CHPT) price fell 8% approx in the current month.
- CHPT Stock hits a fresh 52 week low at $7.82.
- ChargePoint Holdings quarterly earnings on 31 May 2023.
ChargePoint Stock (NYSE: CHPT) fell 8% on a monthly basis and formed a bearish pattern. Prices seem to be in a downtrend and slipping down by forming lower low swings. It hits the fresh 52 week lows which raises concern for the long term investors and no signs of recovery is visible.
CHPT stock price rejected the 200 day EMA and also dropped below the 50 day EMA shows positional trend is in downward direction. However, the price is near the demand zone and quarterly earrings are scheduled on May 31, 2023.
It is expected that a sharp up-move or down-move is possible after earnings which might decide the direction of stock in the coming months.
ChargePoint Holdings (NYSE: CHPT) estimated the EPS at -$0.192 and revenue estimates are $128.371 Million. If the company succeeds in meeting the earning estimates, the stock price might witness a sharp spike and a short covering rally may trigger.
However, if a company disappoint in earnings, the probability of hitting a new low will increase. ChargePoint Stock price closed the previous session at $7.93 with an intraday decline of -3.06%. The market capitalization stands at $2.78 Billion.
Will ChargePoint Stock trap the sellers after earnings
ChargePoint stock price has not performed well in the past few months and eroded all its previous gains. Buyers have tried to keep the price above $10.00 but due to sellers dominance the attempt failed.
Slowly prices continue to decline which is disappointing the investors. If the price dropped below the 52 week low, the bears will try to drag it further down toward $7.00. However, the price seems to be oversold and short covering may trigger any time to clear out the existing short positions.
In the world of financial markets we have seen many times that volume and volatility rises at the time of quarterly earnings. Therefore, the possibility of up-move is high as compared to down-move.
Is CHPT Stock oversold?
CHPT Stock price will gain positive momentum only after the breakout of $10.76. Till then any short term up-move will have low probability of sustaining the higher levels. The technical analysis suggests, CHPT Stock price is in bear grip and any negative news can easily break down the yearly lows.
In the past, buyers have defended the $7.80 support twice and prices showed a meaningful recovery. Hopefully, the same pattern will be followed and short sellers might get trapped in earnings.
Technical indicators like MACD had generated a negative crossover indicating prices are likely to trade with bearish bias. The RSI at 38 denotes weakness and price is near to the oversold territory.
Conclusion
ChargePoint Stock (NYSE: CHPT) fell 8% on a monthly basis and formed a bearish pattern. It hit a 52 week low ahead of quarterly earnings which is scheduled on May 31, 2023. CHPT stock is oversold and if the company meets analyst estimates then sharp up-move is possible. Else, it will surely raise concern for the long term investors.
Technical levels
Resistance levels: $10.76 and $13.68
Support levels: $7.00 and $6.00
Disclaimer
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