Alfi Stock Skyrockets Tuesday: Technical Levels To Watch

Alfi Inc. ALF shares rocketed higher Tuesday after the company announced it entered into an agreement with All-Niter for the fulfillment, staging and shipment of of 10,000 digital tablets to Uber and Lyft drivers.

The tablets are machine learning models that allow content publishers to deliver information without violating user privacy.

Alfi stock was trading 60.7% higher at $5.48 at last check. 

Alfi Daily Chart Analysis

• Shares are trading in what technical traders call a pennant pattern. The stock looks to have broken out of the pattern Tuesday and saw a large gap up.
• The stock is very new and has been around for less than 50 days, meaning there is no 50- or 200-day moving average to examine.
• The Relative Strength Index (RSI) shows a large jump into the overbought region on the indicator.

Key Alfi Levels To Watch

• Shares looked to have broken out of the pennant patterns and are flying Tuesday. The stock made new all-time highs Tuesday.
• The pennant pattern occurs after a stock makes a run up and the price is later condensed between the highs and lows until the price is able to break out of either support or resistance.
• The RSI shows the stock has started to enter the area above 70; this signals that the stock is overbought and has many more buyers than it does sellers. If the stock continues to stay in the overbought range it may continue to run higher throughout the week.

What’s Next For Alfi?

Bullish technical traders would like to see the stock continue to rise and stay overbought. What goes up must come down, and very likely the stock will make a correction in the coming days. Bulls want to see the stock hold some of its gains when the correction comes and move up after consolidation.

Bearish technical traders would like to see the stock fall back to where it was when the stock was trading within the pennant pattern. If the stock can fall below the pattern support, then it may be able to see a further downward push.