Aterian's Stock Looks To Be Cooling Off, What's Next?

Aterian Inc ATER shares are trading higher Thursday although there looks to be no company-evident news to explain the jump in share price. The stock is a favorite among Reddit’s Wall Street Bets community and possibly what’s causing the stock to see some movement.

Aterian was up 8.08% at $10.7 Thursday afternoon at publication.

Aterian Daily Chart Analysis

• Shares had been falling for months, but have broken out of what technical traders call a falling wedge pattern and look to be trending back upward.
• The stock had narrowing highs and lows until it broke above the highs and saw a bullish push. The stock looks to be consolidating and possibly gearing up for a second leg.
• The stock trades above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the stock looks to be in a period of consolidation.
• The stock may find support near the 50-day moving average, while the 200-day moving average may act as resistance.
• The Relative Strength Index (RSI) looks to be consolidating and has slowly faded down to the 51 level. This shows that there are still more buyers in the stock than sellers. The RSI looks like it could be turning back around and ready to head higher again.

What’s Next For Aterian?

Bullish traders are looking to see the stock continue to consolidate for a time and start to form higher lows and head back higher. This period of consolidation the stock is facing could be the break the stock needs before it moves again. As long as the stock maintains interest from traders it could see another push.

Bearish traders want to see the stock be done moving. There is a chance the stock is running out of gas and could see a downward push. If the RSI continues to fall lower, the stock may start to see more selling pressure than buying pressure, causing a further drop in price.

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