SharpLink Gaming's Stock Just Started Forming Into A Pattern: So What?

SharpLink Gaming Ltd SBET shares are trading higher Friday, possibly on continued momentum after the company appointed Brian Bennett as its chief financial officer last week. Bennett’s CFO position became effective Aug. 21, 2021

SharpLink Gaming was up 14.81% at $6.41 at last check Friday afternoon.

SharpLink Gaming Daily Chart Analysis

• Shares are beginning to form into what technical traders call a pennant pattern, and are nearing resistance in the pattern.
• The stock may continue to be condensed between pattern resistance and support until the stock sees a breakout of either support or resistance on above average volume.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock has seen recent bullish sentiment.
• Each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) has moved higher the past few days and now sits at 60. This means that there has been more buying pressure in the stock than selling pressure.

What’s Next For SharpLink Gaming?

Bullish traders are looking to see the stock continue to trade within the pennant pattern for a time until the stock looks ready to breakout. Bulls would then like to see the stock break above pattern resistance and push higher.

Bears would like to see the stock drop and break below pattern support. A break below support with some consolidation below the level and the stock may be ready to see another further bearish push.

Photo by Andrew Roberts on Unsplash