What's Next For Gevo After Breaking Out Of Wedge Pattern?

Gevo Inc. GEVO shares moved higher Monday after retail traders try to push the stock higher. The stock is likely moving on continued momentum from the bill U.S. Sens. Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.) and U.S. Reps. Cindy Axne (D-Iowa) and Mike Kelly (R-Pa.) introduced to support the biodiesel industry.

Gevo Inc. was up 16.62% at $8.91 at last check Monday afternoon.

Gevo Daily Chart Analysis:

• Shares were trading in what technical traders may call a pennant pattern, but now look to have broken out of the pattern and have been moving higher following the break.
• The stock is trading above the 50-day moving average (green) and above the 200-day moving average (blue), indicating sentiment in the stock is likely bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Levels To Watch:

• Gevo broke out of the falling wedge pattern and continued to move higher following the breakout.
• The bullish reversal pattern happens following a large run-up. The stock then cools off and gets squeezed between the highs and lows. The highs are typically at a much steeper slope than the lows.
• The breakout of the pattern happened and the stock moved higher. Now a period of consolidation may need to happen before the stock makes further moves.

What’s Next?

Bullish technical traders would like to see the stock consolidate and cool off for a time before it might make another upward push.

Bearish technical traders would like to see the stock fall back to the area inside of the wedge. Bears would also like to see the stock fall below the moving averages for a possible trend change.

GEVO