ContextLogic Looks Like It Could Break Out Of A Pattern In The Coming Weeks

ContextLogic Inc. WISH shares are trading lower Friday morning after retail traders were able to push the stock lower.

The stock has been a favorite in Reddit’s WallStreetBets community and is always among the top 20 trending stocks on the site. Traders are attempting to push the stock higher as it trends on social media sites such as Reddit and StockTwits.

ContextLogic was down 8.03% at $9.27 at last check Friday.

ContextLogic Daily Chart Analysis

• Shares look to be forming into what technical traders call an ascending triangle pattern.
• The stock is trading below the 50-day moving average (green) and this indicates the stock is likely facing bearish sentiment.
• The stock may find resistance near this moving average in the future.

Key ContextLogic Levels To Watch

• The stock looks to have recently bounced off of support and could head higher inside the ascending triangle pattern.
• The $15 level is an area the stock has seen resistance before and this area may hold as resistance in the ascending triangle pattern.
• The higher low trendline may continue to hold as support as the stock continues climbing. The stock could see a trend change if the price breaks below this trendline.

What’s Next For ContextLogic?

Bullish traders would like to see the stock bounce at the higher low trendline and start moving higher. Bulls would like to see the stock continue to form higher lows and break above the $15 resistance. Bulls would then like to see the stock consolidate above the $15 level to potentially see further bullish moves.

Bearish traders would like to see the stock break below the higher low trendline. If the higher low trendline is able to break and hold as resistance, then the stock may continue to drop lower.