FuboTV Looks Set To Break Out From Long-Term Pattern: What's Next?

FuboTV FUBO is set to print its earnings after the closing bell on Tuesday. When the sports-focused streaming company reported its first-quarter earnings beat, it raised guidance for the second quarter and full fiscal year.

The company raised its second-quarter guidance to $120 million to $122 million, ahead of the consensus estimate of $98.4 million. FuboTV sees subscribers for the year coming in between $830,000 and $850,000, which would represent a 53% year-over-year growth at the midpoint.

Traders and investors may get an update on whether fuboTV is still on schedule to launch its sports betting app by the end of fiscal 2021. In March, the company said it plans to launch free-to-play games in the third quarter followed by sports betting in the fourth quarter.

See Also: How to Buy FuboTV Stock Right Now

The FuboTV Chart: FuboTV is trading down about 55% from its Dec. 22, 2020 high of $62.29. The stock has failed to gain any traction for a large move back toward the $62 level and fuboTV’s daily trading range has decreased due to low volume.

Since making the new high, fuboTV has settled into a large falling wedge pattern with a distinct upper descending trendline. The stock has attempted to break up from the trendline on five separate occasions including on Monday and failed. Monday’s volume was high, however, indicating continued momentum may be in the cards for Tuesday.

On Monday, FuboTV printed a bullish Marubozu candlestick with a small upper wick at the descending trendline, which indicates fuboTV may be ready to make a break north.

FuboTV is trading above the eight-day and 21-day exponential moving averages (EMAs) but the eight-day EMA is trending below the 21-day, which indicates bullish indecision. The stock is trading slightly below the 200-day simple moving average (SMA), which indicates overall sentiment is bearish.

On Monday, fuboTV tried to regain the 200-day SMA as support but rejected and wicked from it. The 200-day aligns with the upper descending trendline resistance which makes the area harder to break through.

• Bulls want big bullish volume to come in and drive fuboTV up through the top of the following channel and for the stock to close the day over the 200-day SMA. If fuboTV’s stock can clear the $28.45 level, it has room to move up toward $31.53.
• Bears want to see the stock continue to reject its upper resistances and for bearish volume to come in and drive fuboTV down toward the $26 level. If fuboTV’s stock was unable to hold the level as support, it could fall toward the $22.37 mark before potentially bouncing.