What's Next After Microvision Stock Gets Saved By Support

Microvision Inc. MVIS shares are trading higher Friday after retail traders were able to push it higher. On Wednesday, the company reported a second-quarter earnings loss of 9 cents per share, beating the estimate calling for a loss of 5 cents per share.

Microvision was up 12.21% at $15.44 at last check Friday.

Microvision Daily Chart Analysis

• The stock looks like it bounced off of support in what technical traders call an ascending triangle pattern.
• The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may hold as resistance, while the 200-day moving average may hold as support.
• The $25 price level has held as resistance multiple times in the past, while the higher low trendline has held as support multiple times. These key levels may continue to hold until the stock either breaks above or below them.
• The Relative Strength Index (RSI) saw a jump Friday and climbed up to the 54 level. This means many buyers have been moving into the stock in the past couple days.

What’s Next For Microvision?

Bullish traders after the bounce at support are looking to see the stock continue moving higher. Bulls want to see the stock eventually break above resistance and make a large upward move.

Bearish traders would like to see the stock fall below the higher low trendline and be able to hold below it. This could let the stock see a further bearish push and change of trend.