Why FuboTV's Stock Is Flying Higher

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When FuboTV Inc FUBO printed its first-quarter 2021 earnings back on May 11, the company raised its guidance for the full year and its stock made a bullish reversal.

The streaming service, known for hosting live sporting events, had been trading in a steep downtrend since making an all-time high of $57.47 on Jan. 27 and its earnings report finally marked the bottom at the $14.64 mark.

The Fubo Chart: After gapping up almost 20% following its earnings, FuboTV consolidated and then continued north 79% before running into a resistance level at $31.53 on June 8. The run-up between May 26 and June 8 created the pole of a bull flag pattern and its consolidation between June 9 and Friday created a flag formation. On Monday, the pattern was recognized and confirmed and FuboTV broke up bullishly from the pattern before slamming into the same area that had given the stock trouble before near the $31.50 area.

By 1 p.m. Monday afternoon, bullish volume had already exceeded FuboTV’s daily average volume by 3.3 million and, after consolidating briefly on lower timeframes, FuboTV’s stock burst through its upper resistance level.

FuboTV is trading above both the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day EMA, both of which are bullish indicators. FuboTV’s stock is also trading above the 200-day simple moving average which indicates overall sentiment in the stock is bullish.

See Also: How to Buy FuboTV Stock Right Now

Bulls want to see continuation and for bullish volume to come in and push FuboTV up to its next resistance level at $34.72. If it can regain that level as support it has room to move up toward $38.78.

Bears want to see FuboTV drop back down and continue to reject the $31.50 area. If FuboTV trades back down below the level it could revisit its next support at $26.01.

FUBO Price Action: Shares of FuboTV were trading up 8.5% to $31.75.

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