Elite Education Group Skyrockets After IPO: Technical Levels To Watch

Elite Education Group International Ltd. EEIQ shares are trading higher after the company's Thursday IPO. 

Elite Education Chart Analysis: The 5-minute chart above shows the stock has three potential key levels.

The first key level comes from where the stock has previously shown support. The stock was able to bounce near these levels multiple times throughout premarket and normal trading hours Friday. This area may show support again in the future.

The stock looks to be building higher lows up to the key level of $35. This can be shown by connecting the lows on the chart with a line and observing that the slope is positive. This line may hold as support in the short term. 

The stock has shown resistance near the $35 level in the past. This is an area the stock has struggled to stay above. This hints that the stock may show more resistance near these levels in the future.

The stock hit a premarket high near $70 Friday. This is an area where the stock could find more resistance if the price is able to cross above the $35 resistance level. 

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Bulls would like to see the stock continue to build higher lows up to the $35 resistance level, in what technical traders may call an “ascending triangle” pattern. Bulls would like to see the $35 resistance level break and hold as support in the future.

Eventually, bulls would like to see the stock begin to build more higher lows up to the $70 resistance level before breaking above, consolidating, and possibly seeing the price make higher moves.

Bears would like to see the stock stop forming higher lows and fall through the $15 support. Consolidation below this level could cause a stronger move to the bearish side.