Root Stock Is Firing Up And Looks Ready To Launch

Root Inc ROOT shares are trading higher Friday, although there looks to be no company evident news to explain the jump in share price. The stock looks like it is possibly ready to break out past resistance and push higher.

Root was up 5.61% at $6.30 at last check Friday afternoon.

Root Daily Chart Analysis

• Shares have been falling for months, but now are approaching resistance in what technical traders call a falling wedge pattern.
• Connecting the highs and lows of the chart shows that the stock has been getting condensed between narrowing highs and lows. These lines connecting the highs and lows are nearing the point where they connect, and a break past support or resistance may happen.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock looks to be in a phase of bearish sentiment.
• The stock may find resistance near each of these moving averages in the future.
• The Relative Strength Index (RSI) has been creeping higher the past few weeks and now sits at 48. This shows that there has been an increasing amount of buyers entering into the stock.

What’s Next For Root?

Bullish traders would like to see the stock break above the pattern resistance and start to move higher. A breakout could cause a strong bullish move to happen where the stock changes trends. Bulls then want to see the stock begin to form higher lows.

Bears are looking to see the stock get rejected at pattern resistance and begin to fall lower. Bears would then like to see the stock fall below pattern support to possibly see a further bearish push.

Photo: Bill Jelen via Unsplash