What's Up With Romeo Power Tuesday?

Romeo Power Inc. RMO shares traded higher Tuesday, likely continuing momentum after the stock recently reported third-quarter earnings results. The earnings per share of the stock came in at a loss of 13 cents per share, beating the analyst estimate calling for a loss of 28 cents per share. Sales came in at $5.8 million, beating the estimate of $4.43 million.

Romeo Power was up 18.06% at $5.23 at the close.

Romeo Power Daily Chart Analysis

• Shares are pushing higher and couldn't break resistance in what technical traders call a sideways channel.
• The $40 area has held as support for the past few months, while the $5.75 level has been an area of resistance, and was also the beginning of a gap down the stock made in August 2021. These key levels may continue to hold until one is broken in the future.
• The stock crossed above the 50-day moving average (green) Monday, but trades below the 200-day moving average (blue), indicating sentiment looks to be turning slightly more bullish.
• The 50-day moving average may now hold as an area of support, while the 200-day moving average may act as an area of resistance in the future.
• The Relative Strength Index (RSI) has been slowly pushing higher and now sits at 58 on the indicator. This shows that buying pressure has increased within the last month and is greater than the selling pressure the stock is seeing.

Bullish traders are looking to see the stock break above the $5.75 resistance and be able to hold it as an area of support. This could show the stock is beginning to turn around and starting to make an uptrend.

Bears are looking to see the stock start falling lower and break below the $4 level. This could show the stock is still on a long-term downtrend and there is no sign of it stopping anytime soon.