Microvision Bulls, Bears Battle Over Key Level: A Technical Look

Microvision Inc MVIS bulls and bears battled in the premarket session Friday over an important support and resistance level at $12.80.

Shares of the Redmond, Washinton-based lidar producer are down over 55% from the 11-year high of $28 made on April 27. During the last week of April, Microvision was trending in the WallStreetBets community and the stock shot up 176% between April 21 and 27 before tumbling.

On April 29, when Microvision reported a first-quarter 2021 earnings miss, its stock gapped down almost 23% but has since settled into a sideways channel with low daily volume.

The stock was ripping 10.06% higher at $13.73 at last check Friday.

The Microvision Chart: On Thursday, Microvision closed below a key level at $12.80. On Friday morning, the stock recaptured the level and was trading above it. The stock has been trading in a channel between $12.80 and its overhead resistance level at $15.36 for the last 10 trading days.

Microvision’s stock is being pressured to the downside by the eight-day and 12-day exponential moving averages. The slight downtrend has caused the eight-day EMA to cross below the 21-day EMA, which is bearish. Microvision is trading above the 200-day simple moving average, which indicates overall sentiment in the stock is bullish.

Bulls want to see bullish volume come in Friday to drive Microvision’s stock over the $12.80 mark and back up toward the $15 level at the top of the channel. If the stock was able to recapture the $15 level, it could trade back up toward $17.74.

Bears want to see Microvision’s stock trade below $12.80 on Friday and for bearish volume or sustained low volume to push the stock down toward the $10 level. If Microvision was unable to hold that area as support, it could trade down to $7.45.

Photo courtesy of Microvision.