CleanSpark Energy May Have Broken Below A Key Support Level

CleanSpark Inc CLSK shares are trading lower Tuesday after the company announced worse-than-expected second-quarter financial results.

The company reported a quarterly loss of $0.38 per share, below the earnings estimate of $0.07 cents per share. Revenue was $11.92 million, coming in below the estimate of $15.2 million.

CleanSpark was down 15.15% at $11.65 at last check Tuesday afternoon.

CleanSpark Daily Chart Analysis

• The stock looks to have broken out of a descending triangle pattern and could possibly see a lower push in the coming weeks.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment.
• Each of these moving averages may hold as a potential area of resistance in the future.
• The $13 price level has held as support multiple times before the stock fell below the level. Lower highs pushed the stock lower until there was nowhere for it to go but below support.
• The Relative Strength Index (RSI) has been falling lately and now sits at 32. This means there was an increase in the amount of sellers in the stock. Many sellers likely came in after the stock saw worse-than-expected earnings.

What’s Next For CleanSpark?

Bullish traders are looking to see the stock bounce and start to form higher lows. If the stock can start forming higher lows, it may see a change in trend.

Bearish traders would like to see the stock hold the $13 level as resistance now. If the stock can hold this level as resistance, then it may be ready to see a further bearish push.