Here's Why Alset EHome International Gapped Past Resistance And Rallied

Alset EHome International Inc. AEI shares rallied higher Monday after the company announced a strategic agreement with Tesla Inc. TSLA for an initial supply of Tesla PV solar chargers, Powerwalls, and electric vehicle chargers for 20 EHomes.

The company said it plans to acquire an additional 70 units in the Houston area and reach a total of 100 EHome deliveries in 2021.

Alset EHome International was up 25.46% at $6.15 at last check.

Alset EHome International Daily Chart Analysis

  • Shares have been trading in a sideways channel and gapped up above resistance into a different channel Monday.
  • The stock gapped above the 50-day moving average (green) Monday, indicating the stock is likely turning bullish. The 50-day moving average may hold as an area of support.
  • The Relative Strength Index (RSI) made a large jump Monday almost reaching the overbought area. The stock sits at 62 on the RSI, nearing 70 where the overbought range starts.

Key Alset EHome International Levels To Watch

  • Early May 2021, the stock saw a large gap down, the top of the gap then became a possible resistance level near $6.15.
  • The stock gapped above this resistance Monday, now the $6.15 level may hold as support.
  • If the $6.15 level is unable to hold as support, the stock may fall to the $3.50 level before finding support.
  • The $12 level previously held as resistance and may still hold as a strong resistance level if the price is able to reach this level again.

What’s Next For Alset EHome International?

Bullish technical traders would like to see the stock make higher lows up toward the $12 resistance. If the stock can break above the resistance and consolidate above the $12 level it may follow with another leg up.

Bearish technical traders would like to see the stock break below the resistance it gapped above Monday. If the stock is able to cross below the $6.15 level it may see a downward push. Below $6.15 and the stock may not find another strong support level until the $3.50 level.

(Photo: Tesla)

Market News and Data brought to you by Benzinga APIs
Posted In: Long IdeasNewsPenny StocksShort IdeasTechnicalsContractsMarketsMoversTrading Ideaselectric vehiclesEV chargersEVshomebuildingsolar chargers
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!