- GPN’s price is currently trading at $120.75.
- GPN stock price has experienced a significant volume candle breakout of a double bottom pattern.
In November 2022, GPN stock entered a consolidation phase, forming a triple bottom pattern. However, it wasn’t until January 2023 that the stock finally broke out of this pattern, showing promising signs of a rally. Unfortunately, the momentum was short-lived as the rally was met with selling pressure in February 2023. Consequently, the stock retraced back to its previous range, which extended from $95.31 to $105.68.
Notably, the $95.31 level acted as strong support, attracting buyers and initiating another uptrend. Conversely, the $113 level became a significant resistance area, pushing the price back towards the $95.31 support multiple times. Within this range, a double pattern began to take shape.
In August, the stock witnessed a notable volume breakout of the double bottom pattern, surpassing the resistance levels at $113.24 and $110. These levels have now turned into crucial support for the current price action. As long as the market remains above $113.24 and $110, there is potential for further upward movement, targeting resistance levels at $123.50 and $131.
Additionally, during this period, the stock experienced a trendline breakout, which was then retested, confirming the validity of the bullish momentum that followed. The breach of the $113.24 resistance level further bolstered the bullish case.
However, it is essential to consider short-term price fluctuations. A possible scenario is that the price may experience retracement or pullback to retest the $113.24 level.
When analyzing the Exponential Moving Averages (EMAs) of GPN stock, we observe that the 50 EMA (yellow line) is currently positioned at 106.58, while the 200 EMA (red line) stands at 108.67. Both EMAs are close to each other, suggesting a consolidation phase in the stock’s price action.
The 50 EMA trending upwards indicates that the stock has been exhibiting relatively stronger short-term price movements. On the other hand, the flat movement of the 200 EMA suggests a more stable and less volatile long-term trend.
Traders and investors typically pay close attention to a potential scenario where the 50 EMA crosses above the 200 EMA. This crossover can act as a bullish signal, indicating a shift in momentum towards the upside. If such a scenario unfolds, it might signal a favorable opportunity for a potential uptrend in the stock’s price.
The Supertrend indicator is currently signaling a bullish momentum for the GPN stock. With the price trading above the green line, the overall sentiment is optimistic. As long as the price remains above this level, the chart is likely to maintain its bullish outlook. However, it is essential to keep a close eye on the market, as a price close below the green line could trigger a shift in sentiment, possibly indicating a bearish trend.
The RSI (Relative Strength Index) and Bollinger Bands are also valuable tools for understanding the stock’s condition. Currently, the RSI shows that the market is in an overbought territory, suggesting that the recent price surge may have been too rapid. This often leads to a short-term correction or pullback. As such, a brief period of bearish sentiment could be expected in the near term.
Despite the short-term bearish outlook due to the overbought condition, the overall bullish sentiment remains intact. If the price can sustain its position above the crucial levels of $113.24 and $110, any pullback may be seen as a retest, possibly creating an opportunity for further upward movement.
Conclusion
As of the current market conditions, the GPN stock price is trading above the support range level of $113.24 and $110. This indicates a positive sign for the overall bullish sentiment in the market. However, it’s important to note that there is a recent fall in the price, which could be interpreted as either a pullback or a retest of the support level.
If the price manages to sustain its position above the support levels of $113.24 and $110, it reinforces the potential for further bullish moves in the stock. A successful hold above these levels could signal a continuation of the upward trend, potentially leading to higher price levels.
Technical levels
Resistance levels:$123.50 and $131.50
Support levels: $113.24 and $110
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
