CommScope (COMM) Stock:  Is a Short-Squeeze  Expected in Price?

• The COMM stock price is currently trading at $1.48.
• The COMM stock price has been declining due to several external factors.

CommScope Company (NASDAQ: COMM) is a network technology company. The firm is specialized in designing, manufacturing, and installation of hardware infrastructure to enable a digital society. It provides services and products like Broadband Devices and enables access to data network systems. Its main focus is to improve customers’ broadband experience.

CommScope Stock Price Declines, Why?

CommScope is facing a continuous decline in its stock price. According to the company, they are facing lower demand rates for its products as the customers have slowed their spending. In addition, the overall telecom industry has also been impacted negatively which has caused the COMM stock price to fall. The other reason is that the company has performed badly as per its past earnings reports.

CommScope (COMM) Stock Analysis

The COMM stock price opened its last intraday session with a decline of 28.33%. and closed with a total decline of 38.84% at $1.48. It is a small-cap company with a market capitalization of $313.641 Million. It traded with a high trading volume of 16.108 Million, which shows that the selling pressure was quite strong in the last intraday session.

Price Analysis of COMM Stock on the Daily Chart

The wider outlook of the COMM stock daily chart shows that the price is inside a falling channel. As we zoom into the chart we can see that the price was consolidating in a range between $3.90 to $3.02. Recently, the price gave the breakdown of the range and started to fall. In the last trading session, the price experienced a gap down. In addition to this, the price has also left a gap above the $3.90 level which needs to be filled.

The 50-day and 100-day EMAs are below the price, indicating that the bears have overall control of the price. As the price is a bit far from the EMA lines, it indicates that it could rise to retest the EMA lines in the upcoming trading sessions. The RSI line is in oversold territory which indicates that the price is due for a pullback. We can expect a rise in price in the upcoming trading sessions. 

The price action and technical indicators are pointing towards a short squeeze where the price can rise to retest the upper trendline of the falling channel and the $3.02 resistance level. The continuation of the further rise in price would only occur if the price reclaims the EMA lines and the $3.02 resistance. After this, it will fill the gap and test its next resistance at $4.40. As long as the price is below the mentioned resistance, it may continue its downtrend. The possible support in the downside will be $1.00 and if it breaks below this level, then it may fall to the lower trendline of the falling channel.

Conclusion

The overall trend of COMM stock is bearish. However, the future price prediction of the stock is bullish as indicated by the technical indicators. The price could rise to retest the upper trendline of the falling channel and the EMA lines. If it closes above this level, then it may begin to rise.

Technical levels

• Resistance Levels: $3.02 and $4.40.
• Support Levels: $1.00.

Disclaimer

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