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Why Gevo Stock Could See A Bullish Reversal In The Coming Weeks

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Why Gevo Stock Could See A Bullish Reversal In The Coming Weeks

Gevo Inc. (NASDAQ: GEVO) shares were trading higher Friday after the company reported first-quarter earnings results.

Earnings were worse-than-expected with a loss of 5 cents per share compared to the analyst estimate calling for a loss of 4 cents per share. 

Gevo was up 25% at $5.95 at last check Friday. gevodaily5-14-21.png

Gevo Daily Chart Analysis

  • Shares have been falling the last few months and are trading in what technical traders call a falling wedge pattern.
  • The stock is trading below the 50-day moving average (green), and above the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
  • The stock may find resistance near the 50-day moving average, and the 200-day moving average may hold as support.

Key Gevo Levels To Watch

  • Gevo is nearing the end of a falling wedge pattern and could see a stronger push soon.
  • This bullish reversal pattern occurs after the stock makes a large run up and starts pulling back. The slope of the line connecting the highs is much steeper than the line connecting the lows.
  • A break above resistance could let the stock move higher, while a break below resistance may hint that the stock is not done falling.

What’s Next For Gevo? 

Bullish technical traders would like to see the stock break out of the wedge pattern and see a move higher. If the stock breaks out and is able to consolidate while holding its gains, it may be able to see another upward push.

Bearish technical traders would like to see the stock fall below the pattern support line. This could indicate that the stock will make a strong move lower. If the stock can cross below the 200-day moving average, sentiment may turn bearish.

 

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