What's Next For Globalstar's Stock Amid Apple Rumor?

Globalstar Inc. GSAT shares are skyrocketing higher Wednesday after a FFC permit has been circulating with traders. The permit being circulated says that Apple Inc. AAPL is one of the company’s customers.

Globalstar is up 19% at $2.46 at time of publication. Shares hit an intraday high of $2.62 earlier in the session.

See Also: Why Globalstar Shares Are Rising

Globalstar Daily Chart Analysis

The stock was able to break out of the pennant pattern about a week ago, and found consolidation before pushing higher once again.

• The stock may continue to move higher if the potential Apple rumor turns out to be true. The news catalyst would help the stock continue breaking out.
• The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has stayed high recently and sits at 70 now. This is the border of the oversold area and the stock is in a time where it is seeing more buying pressure than selling pressure.

What’s Next For Globalstar?

The stock looks to have cooled off after the large gap up and consolidated. Today, the stock is starting to push higher, a classic continuation of a breakout and exactly what bulls wanted to see. Now, bulls would want to see the stock continue to break out and then repeat the same process of consolidation and then breakout.

Bearish traders would like to see the stock start falling and go back into the pennant pattern. If the stock could fall down to the pattern support line and move below this area, then it may be ready for a possible further bearish push.