Indie Semiconductor Rallies: What's Going On And What's Next?

Indie Semiconductor Inc. INDI shares are trading higher Monday, possibly continuing the momentum after the company recently reported third-quarter sales results. The company reported sales of $12.16 million beating the analyst estimate of $11.94 million.

Indie Semiconductor is trading up 6.91% at $15.63 Monday afternoon at publication. 

Indie Semiconductor Daily Chart Analysis

• Shares are rallying and look to be breaking past resistance in what technical traders call an upward channel.
• Connecting highs and lows on the chart show a parallel channel with an upward slope. This shows the stock has been on a steady upward trend.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher for a few weeks now and sits at 73 on the indicator. This shows the stock has reached the overbought zone and has seen much more buying pressure than selling pressure lately.

What’s Next For Indie Semiconductor?

Bullish traders are looking to see the stock continue to rise after breaking above resistance. After running for a while the stock will cool off and the bulls want to see consolidation. Consolidation is key for bulls to see continued upward movement in the future.

Bearish traders are looking to see the stock fall back below the resistance level. If the stock can fall below resistance, the next goal for bears is to see a break below pattern support. This could signal the end of the uptrend and possibly the beginning of a downtrend.