Mobileye's Chart Looks Very Ugly

Mobileye NV MBLY shares are down another 8.9 percent in early trading on Thursday after GoPro Inc GPRO disappointed the market with its Q4 earnings. A nearly nine percent drop is not the end of the world for Mobileye bulls, but the move has done significant technical damage to the stock’s chart.


The latest drop sent Mobileye crashing through the last major technical support level remaining in the stocks short history as a public company. After a major bearish wedge breakdown below $42 support in December, the last major support line for Mobileye was the $32-32.50 level that held in August of 2014 and March of 2015. Unfortunately, today’s decline sent Mobileye plunging under $29, and the $32-32.50 support level will now likely serve as resistance looking forward.
 

Related Link: Little Reason For Optimism In GoPro's Chart
 

For the time being, the three red lines on the chart all represent resistance for Mobileye.

The only short-term technical consolation for Mobileye bulls is that the stock’s RSI of around 27 indicates that the stock has now become oversold. The last two times the stock dipped below an RSI of 30 (circled in blue on the graph), it subsequently logged a modest short-term bounce.

Disclosure: the author holds no position in the stocks mentioned.