MongoDB Climbs on Strong Earnings, Key Levels to Watch
Monitor MongoDB Price Points as Stock Soars Following Database Software Provider's Optimistic Outlook Upgrade
MongoDB (MDB) shares surged more than 16% in premarket trading after the AI-powered software provider lifted its full-year outlook and expanded its stock buyback program. Let's dive into the technicals, identifying key post-earnings price levels to keep an eye on.
Inverse Head and Shoulders Reversal
The stock has formed an inverse head and shoulders pattern between March and June, indicating a bullish upside reversal. This pattern's right shoulder found support just above the 50-day moving average (MA), and the relative strength index (RSI) confirms strengthening price momentum. With the better-than-expected quarterly results, these trends could accelerate in the trading sessions ahead.
Pivotal Resistance and Support Levels
Resistance Levels
Investors should closely observe three significant resistance levels:
- $253: This area marks potential overhead resistance, where the shares may encounter selling pressure near a trendline connecting previous trading activity and the 50% Fibonacci retracement level from the December high to the early April low.
- $298: If the shares breach the $253 level, they could target $298, where several price peaks formed between September and February.
- $355: Accumulated shareholders may seek exit points around this area, where twin peaks formed just above the 200-day MA in November and December 2020.
Support Level
In the event of a pullback, investors should watch for the $212 level as a vital support level. This area encompasses a horizontal line connecting the March 6 gap's daily high and the June and August 2020 troughs, suggesting potential buying opportunities.
Remember, MongoDB's stock is subject to volatility, so investors should proceed with caution when trading or making investment decisions.
For technical analysis, consider utilizing indicators such as the MACD Golden Cross, which suggests bullish momentum, and RSI levels, which currently indicate the stock is not overbought, leaving room for further gains.[1]
Sources:
- [1] MDB Stock Price Action, Technicals, and Short Term Forecast (www.cpomarketscreener.com/stocks/MDB-MongoDB-Inc-A-Classic-Chart-8379210/)
- [2] MongoDB Stock Rallying Toward $330.45: Is It Time to Sell? (www.msn.com/en-us/money/companies/mongodb-stock-rallying-toward-330-45-is-it-time-to-sell/ar-BB1952M2)
- [3] 2 Key MongoDB Stock Levels to Watch Nov 24 (www.investopedia.com/news/2-key-mongodb-stock-levels-watch-nov-24-4888097)
- [4] MongoDB (MDB) Stock Technical Analysis for October 30, 2020 (www.investopedia.com/news/mongodb-mdb-stock-technical-analysis-october-30-2020-4806644)
- [5] MongoDB Stock: Time to Buy Now (www.yahoo.com/now/mongodb-stock-time-buy-now-232033060.html)
- Amid the bullish technical outlook, MongoDB's token price may witness growth as investors consider the artificial-intelligence-powered company's positive earnings report, looking toward possible resistance levels at $253, $298, and $355.
- Inverse head and shoulders pattern indicates a potential upside reversal for MongoDB's trading, with the stock's recent resistance—located near the 50-day moving average—potentially enhancing this bullish sentiment.
- The technology sector, including MongoDB finance, may benefit from the accelerated trends wrought by the stocks' strong performance, especially with a key support level at $212 offering a potential platform for buying opportunities.
