Will Root Inc. Stock Ever Bounce Back? - Root (NASDAQ:ROOT)

Root Inc. (NASDAQ:ROOT) shares traded sharply lower Thursday after the company reported worse-than-expected second-quarter financial results. Sales were $89.80 million, down from $121.40 million a year ago.

Root closed down 19.36% at $5.54.

Root Daily Chart Analysis

The stock pushed down toward support in what technical traders call a falling wedge pattern.
The stock trades below the 50-day moving average (green), indicating the stock has recently seen bearish sentiment.
The 50-day moving average may hold as an area of resistance in the future.
Price may continue to trade in a downward direction inside the pattern until either pattern support or resistance is broken, possibly causing a larger move in the same direction.
The Relative Strength Index (RSI) has been falling for the past few weeks and now sits at 21. This means there are many more sellers in the stock than there are buyers.

What’s Next For Root?

Bullish traders are looking to see a bounce off the pattern support and for the stock to start making higher lows. If the stock can start uptrending, bulls would like to see the stock break above pattern resistance and move higher.

Bearish traders would like to see the stock continue falling lower. A break of pattern support could let the stock see another strong downward move.

ROOTRoot Inc

$55.212.32%

Overview

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