Indie Semiconductors Rallies Higher Inside Bullish Channel

Indie Semiconductors Inc. INDI shares are trading higher Thursday although there looks to be no company evident news to explain the jump in price. The stock has been trending throughout the day on social media sites such as StockTwits.

Indie Semiconductors is up 11.93% at $12.20 at publication time.

Indie Semiconductors Daily Chart Analysis

• The stock looks to be trading in what technical traders would call an upwards channel, nearing the resistance level of the channel.
• The channel is formed by first connecting the lows together to get an idea of the trend the stock is moving in. A parallel line is then formed and connects to the highs of the channel, showing where resistance may be found.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been trading sideways above the middle line and now sits at 63. This is showing there have been more buyers moving into the stocks in recent weeks.

What’s Next For Indie Semiconductors?

Bullish traders are looking to see the stock continue to trade within the channel pattern. The channel is showing a possible steady growth rate in the price of the stock: faster, and the stock sees unsustainable growth; slower, and the stock wouldn't see growth.

Bears are looking to see the stock fall below the channel support and make a bearish push. A drop below the channel support could signal the stock is starting to see a change in trend and perhaps start a downward trend.