Microvast May Be Ready To See A Breakout Soon - Microvast Holdings (NASDAQ:MVST)

Microvast Holdings Inc. (NASDAQ:MVST) shares are trading higher Friday, moving up after Reddit’s WallStreetBets community found it and pushed the stock higher.

On Wednesday, Morgan Stanley initiated coverage on Microvast with an Underweight rating and announced a price target of $6.

Microvast was up 13.85% at $11.92 at last check.

Microvast Daily Chart Analysis

After catching the eye of retail traders, the stock saw a large run-up and is nearing resistance in a falling wedge pattern.
The stock trades above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
The 50-day moving average may hold as support while the stock could find resistance near the 200-day moving average.
The price will likely continue to be condensed between the narrowing highs and lows until it breaks above pattern resistance or support.
The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 63 on the indicator. This means there have been many buyers moving into the stock the past few days.

What’s Next For Microvast?

Bullish traders are looking to see the stock continue to climb and break out of the wedge pattern. If the stock can break out and see some consolidation while holding gains, it may be ready for its next leg up.

Bearish traders would like to see the stock fall back down to pattern support. Following this, bears want to see the stock break below pattern support and see a further downward push.

MVSTMicrovast Holdings Inc

$1.452.11%

Overview

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