Cumulus Media Inc. (CMLS) Stock Displaying Signs of Bearish Move

• The CMLS stock price is currently at $4.70.
• The price is currently facing rejection from the EMAs.

Cumulus Media Inc. (NASDAQ: CMLS) is a broadcasting company. It runs its business operation through its radio stations and engages with millions of its listeners through high-quality audio content.

Cumulus Media Inc. (CMLS) Stock Analysis

The CMLS stock price has gained 4.21% in the last trading days by recovering from the three-day continuous fall of 14.94%. Currently, the stock price is at $4.70.

At the start of August 2023, a massive dump in the price was seen in which the stock price declined by 33%. After the sell-off, the price formed a support zone at $4.32 and was sustained above it. 

Now, the price has formed its second lower high which shows the interest of the sellers in the current market scenario. The price has given the breakdown of the triple-top pattern and is currently retesting its neckline.

Will the Price Sustain Above the $4.32 Level?

The CMLS stock price has been retesting the $4.93 level, which is the neckline of the triple-top pattern. In the way of retesting, it faced rejection from the 100-day and 50-day EMAs, which didn’t let it rise higher. This shows that the bears are not letting the bulls take control of the price.

The relative strength index (RSI) is below its 50-level, which is marked as bearish territory. The upward sloping line shows that a recovery in the price is ongoing after a consistent decline for three days. The chances are high that the RSI line may face resistance from its 50-level and slope in the downward direction again.

The technical analysis shows bears that are fully in control. However, for the continuation of the downtrend, they must close the price below the ascending trendline and the $4.32 support zone. After this, the continuation of the downtrend may be seen till its next support at $3.00.

The bulls seem weak, despite showing their presence at the $4.32 support zone. For a bullish rally, buyers have to close the price above the $5.44 resistance level and then a long-term bull run can be seen till $6.50. Otherwise, any rejection from this level can cause the price to fall.

Conclusion

The price prediction for CMLS stock is bearish as the bears are very dominant in the current scenario. The technical indicators are in favor of the bears at the time of writing. However, the continuation of the downtrend can be confirmed only after the breakdown of the $4.32 support level.

Technical levels

Resistance Levels: $5.44 and $6.50.

Support Levels: $4.32 and $3.00.

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.