Corsair Sees A Big Drop After Earnings: What's Next?

Corsair Gaming Inc. CRSR shares are trading lower Tuesday after the company reported worse-than-expected earnings. The company reported earnings of 28 cents per share, missing the analyst estimate of 29 cents per share. Revenue came in at $472.9 million, beating the analyst consensus of $467.1 million.

Corsair Gaming was down 5.69% at $27.36 at last check Tuesday.

Corsair Gaming Daily Chart Analysis

• Shares look to have broken out of what technical traders call a sideways channel after falling below $30 support.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock is likely bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The stock fell and broke below support, a sign bears are taking control of the stock, and the stock may continue to fall until it finds support once again.
• The Relative Strength Index (RSI) has been falling and now sits at the 29 level. This is in the oversold area meaning there are currently many more sellers in the stock than buyers.

What’s Next For Corsair Gaming?

Bullish traders would like to see the stock find some support and start heading back toward the $30 level. Eventually bulls would like to see the stock cross above the $30 level and start trading within the channel again.

Bears would like to see the stock continue to fall and plummet lower. Bears would like to see the stock be unable to cross above the $30 level again, potentially forming a very strong resistance level near the mark.