Skillz Stock Nears The End Of A Wedge Pattern: What's Next?

Skillz Inc SKLZ shares are trading higher Friday possibly because Cathie Wood’s ARK Invest purchased more of the stock. The stock was trending throughout the day on social media sites such as StockTwits.

Skillz was up 2.82% at $10.22 at last check Friday morning. 

PreMarket Prep Stock Of The Day: Skillz

Skillz Daily Chart Analysis

• The stock looks to be trading in what technical traders call a falling wedge pattern. The stock could see a break out in the coming weeks.
• The price has been getting condensed between narrowing highs and lows and is nearing the end of the pattern. A break past resistance or support may signal the stock is ready to break out and make a strong move in the same direction.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment.
• Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been pushing higher the past few days and sits at 55. There is now more buying pressure in the stock than there is selling pressure.

What’s Next For Skillz?

Bullish traders are looking to see the stock break above the pattern resistance. A break above resistance with a period of consolidation above the level could let the stock see a break out with a strong bullish push.

Bearish traders are looking to see the stock get rejected at the pattern resistance and start falling toward pattern support. Bears eventually are looking to see the stock fall below support and hold below it. This could cause a further breakdown in the stock.

Image: Skillz