What's Next For Bakkt Holdings?

Bakkt Holdings Inc BKKT shares are trading higher Wednesday, reversing after having a very down day Tuesday. Monday the company announced it was working with Mastercard Inc MA to make it easier for merchants and banks to use and offer a broad set of cryptocurrency solutions and services.

Bakkt is trading up 26.71% at $30.08 at last check Wednesday afternoon.

Bakkt 15-Minute Chart Analysis

• Shares are nearing resistance in what technical traders call a bullish flag pattern.
• The stock has been trending downward for a time with a parallel downward sloping resistance and support line. These lines may hold as support and resistance for a time until one of them is broken.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been moving sideways throughout the past few days and now sits at 59. This shows that there is more buying pressure in the stock than there is selling pressure.

What’s Next For Bakkt?

Bullish traders are looking to see the stock break above the pattern resistance and hold above it to see a further move higher. Bulls are then looking for a large bullish move and a period of consolidation to possibly see more moves in the future.

Bearish traders are looking to see the stock get rejected at the resistance level and start to fall back lower. If the stock cannot break above resistance it may continue to fade lower in the pattern.

Photo: Luis Villaasmil via Unsplash