Garmin Stock Surges by 10.73%; Will the Upward Move Continue?

• The GRMN stock price is at $113.53.
• The price has given the breakout of the strong resistance of $108.00.

Garmin Limited (NYSE: GRMN) is a technology company that works on GPS-enabled devices. It designs and develops hand-held portable GPS devices. The company products are used in different markets such as Automobiles, Aviation, Marine, Outdoor, and Fitness. 

Garmin Limited (GRMN) Stock Analysis

The GRMN stock price consolidated inside a range of $100.92 to $108.00 for the last four and half months. In the last trading sessions, the price gave the breakout of the range with a huge volume and registered an intraday gain of 10.73% in the stock price. Currently, the GRMN stock price is at $113.53, which is just below its immediate resistance of $116.07.

Breakout of the $108.00 Resistance In the Daily Timeframe

The formation of a substantial, strong bullish candle just above both the 50-day and 100-day exponential moving average (EMA) lines, accompanied by a significant spike in trading volume, signifies that a considerable number of investors have participated in this breakout. This influx of investment activity has led to a shift in price sentiment from bearish to bullish.

The Relative Strength Index is at 70.48 which is bullish territory. The RSI line is sloping in the upward direction which shows that high buying pressure is being applied by the buyers. However, the RSI line is heading towards overbought territory due to which a short-term pullback can be expected in the upcoming trading session.

So, we can expect a rejection from the $116.07 resistance level and the price can retest either the EMA lines or the $108.00 level. 

A long-term bullish rally is expected for GRMN stock, and so after this breakout, the price has the potential to reach its resistance at $121.69. However, this will only occur when the price gives the breakout of the $116.07 resistance, which will trigger the next phase of the bullish rally.

The sellers have a very low chance of taking back control of the price. From their perspective, they are waiting for the price to close below the $108 level which would cause a breakout failure scenario. This will create a panic situation among the buyers and they will start to square off their positions. After this, a strong selling can be seen in the GRMN stock’s daily chart and the price may fall to its next support at $100.92, which will also fill the gap.

Conclusion

The price prediction for GRMN stock is bullish. However, a small pullback can be expected in the upcoming trading sessions. The technical indicators are also bullish but are pointing towards the short-term fall in the price. For traders who may have missed the initial breakout entry, it’s advisable to wait for the formation of a strong bullish candle above the EMA lines or the $108.00 level. This could serve as a potentially opportune entry point, aligning with the ongoing bullish sentiment in the market.

Technical levels

Resistance Levels: $116.07 and $121.69.

Support Levels: $108.00 and $100.92.

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.