C3.ai Shows Strength As It Tries To Climb Back Into Pattern

C3AI Inc. AI shares are trading higher Friday after the company announced it won a $500 million U.S. Department of Defense (DOD) Production-Other Transaction Agreement. This agreement allows for an accelerated timeline to acquire C3.ai's suite of enterprise AI products and will allow any DOD agency to acquire C3.ai products and services for modeling and simulation.

C3.ai was up 4.49% at $33.54 at time of publication Friday.

C3.ai Daily Chart Analysis

• Shares look to be rebounding after falling out of the bottom of what traders call a falling wedge pattern. The stock is attempting to reclaim support in the pattern and resume trading within it.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) is bouncing back and now sits at 36 on the indicator. This shows that although more buyers have entered into the stock, there is still more selling pressure than buying pressure.

What’s Next For C3.ai?

After falling below the pattern support, the stock looked more bearish and one could say bears are in control of the stock because it sits below the pattern and the moving averages.

Bulls are looking to see the stock break back above the pattern support and go on to break pattern resistance. This may show a long-term trend reversal is happening.

Photo by Brad Barmore on Unsplash