Skillz Pulls Back: Technical Levels To Watch

Skillz Inc.SKLZ shares pulled back Friday after outperforming analysts' expectations for the first quarter of 2021.

Skillz closed down 3.83% at $18.60.

Skillz Short Term Chart Analysis: The 5-minute chart above shows the stock has been in a steady downtrend throughout the week.

The stock is down-trending short term. This can be seen by connecting the highs of the chart and observing that the slope of that line is negative.

Finding a level of support short term is a guessing game as the lows continue to get lower as shown on the chart with the line made by connecting all of the lows.

The stock is trading under both the 200-day moving average (blue) as well as the volume-weighted average price (pink). This indicates the sentiment of the stock is bearish short term.

Skillz Daily Chart Analysis: The chart looks to have completed a “head and shoulders” pattern and could be finding support in the future.

A head and shoulders pattern is a bearish reversal pattern. The pattern started near the $18 level and the price may bounce near this area. If the $18 is unable to hold as support, the stock may fall further to the $14 level as this was previous resistance on the chart.

What's Next: Bulls would like to see the stock bounce and start to make higher lows. Higher lows may indicate the trend of the stock is changing.

Bears would like to see the stock fall through the support levels.