Why Context Logic Could Be Ready To Break Out Following Partnership News

Context Logic Inc. WISH shares traded higher Monday after the company announced it would be entering a two-year partnership with the e-commerce platform PrestaShop.

Through the partnership, over 300,000 merchants and brands on the PrestaShop platform will be able to reach the millions of consumers on the Wish marketplace.

Context Logic was up 14.15% at $11.42 at last check. 

Context Logic Daily Chart Analysis

• Shares were falling the last few months in a downward trending channel, and now the share price is nearing the resistance of the channel.
• The stock is trading below, but nearing the 50-day moving average, indicating sentiment has been bearish but is looking to start turning bullish.
• The 50-day moving average may hold as an area of resistance until the price is able to cross above the level. 

Key Context Logic Levels To Watch

• The stock is trading in a downtrending channel and is nearing resistance in the channel.
• The bottom of the channel had previously acted as support while the top of the channel acted as resistance. These levels may continue to act this way until one of them is broken.
• The Relative Strength Index (RSI) recently saw a push upward into the overbought side of RSI. The RSI crossed above the 50 mark, meaning it has become bought more than sold, and if the stock can hold here, it may see an upward push. 

What’s Next For Context Logic? 

Bullish technical traders would like to see the stock break above resistance. A break above resistance could bring about a strong upward move. Following an upward move, the stock may need to consolidate before another upward push may occur. 

Bearish technical traders would like to see the stock fall below the channel support. If the stock is able to fall below support, it may see a large downward move. Bears would also like to see the RSI fall back below 50.