What's Up With Clover Health Stock Wednesday?

Clover Heath Investments Corp. CLOV shares gained 6.35% in Wednesday's session. 

A Form 4 Filing late Tuesday showed the company's COO acquired 220,820 shares. The stock is also a top stock in Reddit’s Wall Street Bets community and may be getting a push from retail traders.

Clover Health Daily Chart Analysis

• Shares saw a large run up but have since fallen back into an old sideways channel, finding support where the stock has done so before.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue). The stock has likely been facing bearish sentiment.
• Each of these moving averages may hold as an area of resistance in the future.

Key Clover Health Levels To Watch

• After falling back into the channel, the stock found support near the $7 once again. This area held as support before and may again in the future.
• The $10 level previously has held as both support and resistance. The stock held $10 as support before breaking below, and the level later turned to resistance.
• The Relative Strength Index (RSI) sits at 41 and has been trading below the middle line for a time. This means there have been more sellers in the stock than buyers.

What’s Next For Clover Health?

Bullish traders would like to see the stock form higher lows and move toward resistance. Bulls would like to see the stock be able to break above resistance. Bulls also want to see the RSI move above the 50 level, signaling there are more buyers than sellers in the stock.

Bearish traders would like to see the stock dip more and fall to the $7 support level. If the stock can break below the $7 level and hold it as resistance, the stock may see a large downward move. Bears want to see the stock stay below the moving averages to maintain the sentiment.