C3.ai Inc. Looks Like It's Ready To Break Out Soon

C3.ai Inc. AI shares are trading higher Tuesday after the company secured a five-year renewal of a strategic deal with Shell RDS. This agreement will accelerate the deployment of enterprise AI and ML applications on the C3 AI Suite across Shell.

C3.ai closed up 16% at $71.76. Below is a technical analysis of the chart.

C3.ai Daily Chart Analysis:

• C3.ai looks to be forming into what technical traders may call an ascending triangle pattern.
• The stock crossed above the 50-day moving average (green) Tuesday, possibly hinting that sentiment in the stock is turning bullish.
• This moving average may hold as an area of support in the future.

Key Levels To Watch:

• The ascending triangle pattern is a bullish continuation pattern that happens when higher lows are squeezed between a flat top resistance.
• The stock has formed higher lows throughout the month, this higher low trendline has held as support throughout May.
• The $70 level has held as resistance for the past few months and now the stock is testing an area it has previously been unable to break above.

What’s Next?

Bullish technical traders would like to see the stock break out of the ascending triangle pattern and see an upwards push. Following a breakout, bulls would like to see the stock consolidate and continue to form higher lows.

Bearish technical traders would like to see the stock fall below the higher low trendline. A cross below this trendline could signal that bears are taking control and the stock may see a strong push downwards.