Romeo Power Needs To See A Bounce Off Support

Romeo Power Inc. (NYSE:RMO) shares are trading lower Friday, despite announcing the company entered into a long-term supply agreement for lithium-ion battery cells with LG Energy Solution, Ltd.

This agreement will supply Romeo Power with battery cells through the year 2028.

Romeo Power was down 2.61% at $6.72 at last check.

Romeo Power Daily Chart Analysis

Shares look to be bottoming out and are forming a possible cup pattern on the daily chart.
The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
Each of these moving averages may hold as an area of resistance in the future.
The stock looks to be forming into a cup pattern. If the stock can see some buying pressure, it may continue to form the pattern.
The Relative Strength Index (RSI) has been trading sideways below the mid-line and sits at 41. This means there have been more sellers in the stock than buyers.

What’s Next For Romeo Power?

Bullish traders are looking to see the stock climb along the cup pattern and move higher. Bulls would like to see the stock begin to form an upward trendline with higher lows.

Bears would like to see the stock break below the trendline and continue to fall. Bears are in control as the stock has been falling and trades below both moving averages.

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.