CELH Stock Analysis: The Price Is Making a Bullish Correction

• The CELH stock price was rejected from the $177.38 resistance level.
• Price is trading between the 50-day EMA and the 200-day EMA displaying short-term fall.

Celsius Holding, Inc. (NASDAQ: CELH) produces nutritional functional foods, dietary supplements, and beverages. The company distributes its products through direct store delivery distributors and retailers across various channels including, gyms, health clubs, supermarkets, military, and e-commerce websites.

An Overview of the Financials and Stock

The company had a turnaround revenue of $653.60 Million in the year 2022. It experienced an increase of 107.97% in its revenue compared to the year 2021. However, It has observed a drastic decrease of -2392.00% in its net profit margin.

According to the 2023 quarterly report, the net profit margin of the firm has increased by 165.71%. On the other hand, the earnings-per-share has also increased by 392.50% as per the year-to-year change. It has shown positive growth compared to the year 2022.

In the last two months, the CELH stock’s price has given a breakout of the $157.28 level which possibly led to an all-time high level at $206.85. Right now, it is moving for a bullish correction from the $146.48 gap-up opening level. 

The 52-week high and low price of the CELH stock is at $206.85 and $78.24 while having $207.50 as a yearly target. The total market capitalization of the stock is $12,457,916,599 with an average volume of 1,187,040.

CELH’s Stock Price Technical Analysis

The current share price is trading below the 50-day EMA and above the 200-day EMA, which signifies a short-term fall. If the share price closes below the 200-day EMA, it may seen as a sign of a potential reversal. 

At press time, the price is trading at $162.02 after getting rejected from the $170.73 level. It has fallen over 17% since the breakdown of a narrow rising wedge. Currently, the price is making a bullish correction move for the continuation of the uptrend. The gap-up levels at $146.48 and $137.09 might become the retracement level of the CELH stock price.

Moreover, the relative strength index (RSI) is showing a bullish divergence at the $157.89 level. It could possibly become a false signal for trapping the bulls. At present, the RSI is at 42.95 above the signal line. 

Conclusion

The CELH stock price has been trading in a strong uptrend since April 2023. After making an all-time high level at $206.85, it gave a breakdown from the narrow-rising wedge at $198.11 level. At press time, it is making a bullish correction move for the continuation of the uptrend. The gap-up levels at $146.48 and $137.09 might become the retracement level of the CELH stock price. If it successfully retraces and closes above the $157.89, it may rise toward the $207.50 yearly target.

Technical Levels

• Resistance levels: $177.38 and $205.94
• Support levels: $137.09 and $115.97

Disclaimer

The views and opinions stated by the author, or any person named in this article, are for informational purposes only. They do not establish financial, investment, or any other advice. Investing in or trading stocks comes with the risk of financial loss.