Clover Health Could Bounce At Support Level: Technical Levels To Watch

Clover Health Investments Corp. CLOV shares gained 20.41% Thursday amid reports that the company was mentioned and approved in 10 states to participate in a global and professional direct contracting model.

Here's a chart analysis of the stock. 

Clover Health Daily Chart Analysis: The stock looks to have bounced near the support level of $7 and may be heading back up in a change of trend.

The $7 mark is a place where the chart has previously found support. 

The stock has struggled to break below this level in the past. On Thursday, the stock opened near this level and moved higher. 

The stock may show resistance near the $10 level, as this was an area where the stock held as support before breaking below in early March.

This area may hold as resistance again in the future if the stock is able to move up to these levels.

The stock is trading below the 200-day moving average (blue), hinting that overall sentiment may be bearish on the year. This indicator may hold as a resistance in the future.

What’s Next For Clover? Bullish technical traders would like to see the stock build up to the resistance level with higher lows before breaking out. Consolidation above the $10 level may allow the price to move up in the future.

Bearish traders would like to see the stock fall back to the support level before falling through. Consolidation below this level may cause the stock to fall further.