Gevo Inc. Looks Ready To Breakout In The Next Couple Weeks

Gevo Inc. GEVO shares are trading higher Tuesday after retail traders were able to push the stock lower. The stock was trending throughout the day on social media sites such as StockTwits.

The company is scheduled to release its second-quarter financial results on August 12, 2021.

Gevo Inc. was up 8.30% at $6.13 at last check Tuesday afternoon.

Gevo Inc. Daily Chart Analysis

• Shares are forming into what technical traders would call a pennant pattern, and could see a breakout within the next couple of weeks.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock recently has faced bearish sentiment.
• Each of these moving averages may hold as an area of resistance on the chart.

Key Gevo Inc. Levels To Watch

• The pennant pattern began forming in late 2020, and may see a breakout within the next couple of months.
• The price will likely continue to be condensed between narrowing highs and lows until the stock is able to break above the pattern support or resistance and possibly see a strong move in the same direction.
• The Relative Strength Index (RSI) has been falling throughout the past few weeks and now sits at 40. The RSI was nearing the oversold area before making a jump back toward the middle line throughout the past couple of days. There are still more sellers than buyers in the stock.

What’s Next For Gevo Inc?

Bulls would like to see the stock continue trading within the pattern until it reaches the end of the pennant and then breakout. Bulls want to see the stock breakout and make a large move above the pattern resistance. Bulls then want to see consolidation where the stock holds its gains.

Bears would like to see the stock break below the pattern support. If the stock was able to break below the pattern support and have a period of consolidation below, then it may see a further bearish push.