What's Next For Datchat As It Bounces Off Support In A Pattern?

Datchat Inc. DATS, a popular Reddit and Twitter stock, is trading higher Friday.

Datchat was up 32% at $10.69 at publication time.

Datchat Daily Chart Analysis

• Shares look to have recently bounced off support in what technical traders call an ascending triangle pattern.
• The $15 level has held as resistance in the past and may continue to in the future. The higher low trendline has seen a couple of bounces and may continue to hold as an area where the stock could find support.
• The stock has yet to form any moving averages greater than 50-days. This makes it tough to read the sentiment as the stock is still new to the market.
• The Relative Strength Index (RSI) has been falling throughout the past few weeks and now sits at 48. This shows there was an increase in sellers for the past couple of weeks and now selling pressure as outweighed buying pressure.

What’s Next For Datchat?

Bullish traders are looking to see the stock continue to form higher lows and push toward resistance. Bulls are then looking to see the resistance break and a period of consolidation above the level.

Bearish traders are looking to see the stock drop below the higher low trendline and possibly see a change in trend. A change in the trend could bring more bearish sentiment into the stock.