Newegg Needs Too Bounce At This Key Level To Stay Bullish

Newegg Commerce Inc. NEGG shares are trading higher Friday after retail traders were able to push the stock higher.

The stock has been experiencing large volatility and above-average volume causing the stock to see a breakout. The stock is still likely moving after retail traders put a large amount of volume into the stock.

Newegg was up 12% at $29.41 at last check.

Newegg Daily Chart Analysis

• Shares look like they broke out of an ascending triangle pattern and are now trying to test old resistance as support.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment in the stock has been bullish.
• Each of these moving averages may act as an area of support in the future.

Key Newegg Levels To Watch

• The stock looks like it's bouncing off of support after seeing a large breakout of an ascending triangle pattern.
• The $25 level is an area the stock has seen resistance before. After breaking out, this area may hold as support.
• The higher low trendline may continue to hold as support as the stock continues climbing. The stock could see a trend change if the price breaks below this trendline.

What’s Next For Newegg?

Bullish traders would like to see the stock bounce near the $25 level and start moving higher. Bulls want to see the stock form higher lows and continue to trade higher. Bulls want the stock to stay above the moving averages to maintain bullish sentiment.

Bearish traders would like to see the stock break below the $25 level and then the higher low trendline. A break below these potential support levels and below the moving averages means that the trend in the stock is likely changing.