Exela Technologies Stock Looks To Be Forming A Pennant

Exela Technologies Inc. XELA shares were trading higher Tuesday after the company reported strong SMB user growth last week. The company reported a doubling of signups as well. The stock has been frequently mentioned on social media in recent weeks. 

Exela was up 14.62% at $3.26 at last check.

Exela Daily Chart Analysis

• Shares look like they might have started to form what technical traders would call a pennant pattern.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment is likely turning bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The price saw a high and then cooled off to form a higher low. If the stock can move higher to pattern resistance, the pennant pattern may continue to form.
• The Relative Strength Index (RSI) has been starting to move higher and now sits at 59. The stock is about halfway between the middle line and the overbought area.

What’s Next For Exela?

Bullish traders would like to see the stock continue to trade in the pennant pattern and then break out above pattern resistance. Bulls would then like to see a large upwards move and consolidation where the stock can hold its gains.

Bears would like to see the stock move lower and fall below the pattern support line. A break below pattern support may cause the stock to see a further bearish push.

Bears would also like to see the stock fall below the moving averages for a potential change in trend and sentiment.

See also: Best Online Stock Brokers