Microvast May Be Turning Around After News

Microvast Holdings Inc. MVST shares are trading higher Friday likely on continued momentum after the company announced it will form a partnership with eVersum. Together, the companies will develop state-of-the-art battery solutions for electric vehicles.

Microvast was up 17.07% at $9.60 at last check.

Microvast Daily Chart Analysis

• The stock is trading in what technical traders call a falling wedge pattern, recently bouncing off support within the pattern.
• The stock trades below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
• Each of these moving averages may hold as an area of resistance.
• The price was able to see a bounce following the news of the partnership. If momentum can continue, the stock could see a breakout in the coming months.
• The Relative Strength Index (RSI) looks like it's making a turnaround and has been moving higher. The RSI was trading in the oversold area, but now sits at 34, meaning more buyers have been moving into the stock but still overall the stock has more sellers.

What’s Next For Microvast?

Bullish traders are looking to see the stock form higher lows in the pattern. Eventually, they would like to see the stock break out of the pattern and see a strong bullish move.

Bearish traders would like to see the stock fall and break below the pattern support. If the stock was able to break below pattern support, it could see a further strong bearish push.