Corsair Gaming Sees Big Gap Up: What Could Happen Next?

Corsair Gaming Inc. CRSR shares traded higher Monday as retail traders push the stock up. The stock was trending throughout the day on StockTwits and joined the meme stock crusade by becoming the newest stock in Reddit’s WallStreetBets.

Corsair Gaming was up 23.27% at $39.89 at last check. Below is a technical look at the chart.

Corsair Gaming Daily Chart Analysis:

• Shares made a large gap up Monday morning, gapping above a previous resistance and into an old channel the stock previously traded in.
• The stock gapped above the 50-day moving average (green) Monday, hinting sentiment in the stock is turning bullish.
• The 50-day moving average may hold as an area of support as the price trades above it.

Key Levels To Watch:

• The $35 level previously held as resistance before the stock gapped above it Monday. Now this area may hold as support.
• The stock once found resistance near the $48 level while it traded in the channel. The stock may find resistance again here if the price can reach this level again.

What’s Next?

Bullish technical traders would like to see the stock consolidate for a time and start to make higher lows toward the $48 resistance. If the stock is able to cross above the $48 resistance and consolidate for a time, the stock may see a stronger upward push.

Bearish technical traders would like to see the stock fall back below the channel it gapped up into. If the stock falls below the channel and holds the $35 level as resistance as it once did, it may be subject to see a further downward push.