Did QuantumScape Stock Find A Bottom? - QuantumScape (NASDAQ:QS)

Quantumscape Corp (NYSE:QS) shares are trading higher Thursday, likely on continued momentum after the company secured a new set of buildings in San Jose, California, for its future manufacturing hub, QS Campus.

QuantumScape was up 13.81% at $39.90 Thursday at publication.

QuantumScape Daily Chart Analysis

The stock looks to be forming a bottom and possibly getting ready to form into what technical traders call a cup pattern.
The stock has been forming higher lows for the past few months and is now starting to gain some traction and push higher more parabolically.
The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock is likely bullish.
Each of these moving averages may hold as a potential area of support in the future.
The Relative Strength Index (RSI) has been pushing higher the past few weeks and now sits at 72 on the indicator. This shows the buying pressure in the stock outweighs the selling pressure.

What’s Next For QuantumScape?

Bullish traders are looking to see the stock continue to trade above the cup pattern. Bulls are also looking to see the stock be able to hold above the moving averages for sentiment to stay bullish. Higher lows are key for the stock to see a stable amount of growth.

Bears would like to see the stock fall below the cup pattern, which would signal the stock has stopped making higher lows. Bears are also looking to see the stock fall below the moving averages for sentiment to turn bearish.

Photo by Debby Hudson on Unsplash

QSQuantumScape Corp

$7.300.50%

Overview

Market News and Data brought to you by Benzinga APIs

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