ViacomCBS Inc. (NASDAQ:VIAC) shares are trading higher Monday, although they appear to have been rejected at the 50-day moving average. Meanwhile, shares are seeing a large gap higher and could be headed toward a key level that was once support but may now act as resistance.

ViacomCBS was up 6.97% at $32.28 at publication time.

See Related: Is ViacomCBS Stock Overvalued Or Undervalued?

ViacomCBS Daily Chart Analysis

• The stock has been forming higher lows the past couple of weeks and looks to be heading back toward a sideways channel it traded in previously. The stock may find resistance near these former levels, around the $37.50 and the $42 levels.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been establishing higher lows and climbing the past couple of weeks, currently sitting at 56. This shows the stock is seeing more buyers enter the asset, and now there is more buying pressure than selling pressure.

What’s Next For ViacomCBS?

The stock crossing above the middle line of the RSI and creating higher lows is a bullish sign. It shows that the stock is seeing more buyers entering the market.

Bullish traders are looking to see the stock continue to build higher lows and work up to the $37.50 level. Bulls are also looking for a cross above the moving averages for a possible change in sentiment.

Bears are looking to see the stock be unable to cross above the 50-day moving average and begin to fall back lower, once again forming lower highs.

Related Link: Analysis: The Hits And Misses Of The 2021 Movie Year

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