Corsair Gaming's Stock Is Getting Ready For A Big Move, But Which Way?

Corsair Gaming Inc. CRSR shares gapped up Tuesday then found some sellers and are now down 5%.

The company reported better-than-expected first-quarter EPS and sales results, with $0.58 EPS beating the $0.33 estimate, while sales of $529.41 million beat the $449.7 million estimate.

Corsair Daily Chart Analysis

• Corsair looks to be trading within an ascending triangle pattern and looks to be nearing the potential support line of the pattern.
• The stock crossed above the 50-day moving average (green) Tuesday morning, but fell back below the moving average shortly after.
• The stock not being able to hold above the moving average Tuesday morning shows this moving average may be a place of resistance.

Key Levels To Watch

• The $36 level previously held as resistance as the stock struggled to get above this level for a period of time.
• Beyond the $36 resistance, the stock may not find a strong area of resistance again until it nears the $48 level.

What’s Next?

Bullish technical traders would like to see the stock be able to break above the $36 and consolidate. After consolidation above resistance, bulls would like to see the stock build higher lows up towards the $48 resistance.

Bearish technical traders would like to see the stock fail to hold the higher low support. Below this support the stock may see a strong push downwards.