Jumia Shares Fall Tuesday: What's Going On?

Jumia Technologies AG. JMIA shares are trading significantly lower Tuesday after the company reported third-quarter results. Revenue came in at $42.7 million, beating the estimate of $40.2 million.

Jumia Technologies was down 20.09% at $14.79 at last check.

Jumia Technologies Daily Chart Analysis

• Shares saw a large dip Tuesday and are now trading within what technical traders call a sideways channel.
• The stock previously found resistance near the $20 level before it was able to break above the level and begin to hold it as support. The price has now fallen back below this level, indicating it may be an area of resistance once again. The stock has found support near the $7 level in the past and may hold this area as support once again.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a big drop and now sits at 31. This is right on the border of the oversold area and shows the stock has been seeing a lot of selling pressure in the last couple days.

See Also: Why Jumia Shares Are Falling Today

What’s Next For Jumia Technologies?

Bullish traders are looking to see the stock find some support and make a bounce back higher. Bulls would then like to see the stock be able to climb back above the $20 level and hold it as support and go on to make higher lows from there.

Bears are in control of the stock and want to see it keep falling back lower toward the next possible support line. Bears are looking to see the stock fall below the $7 level and hold it as resistance.