Could Microvision Stock Break Out Soon?

[Benzinga, Getty]

Microvision Inc. (NASDAQ: MVIS) shares pulled back Thursday after a sharp rally, falling 16.23% to $15.54. Here’s a look at the stock’s technical levels. 

Microvision Daily Chart Analysis: The stock looks to be forming what technical traders may call a “bullish flag” pattern.

Connecting the highs and lows on the Microvision stock chart shows that it’s trading in a downward channel following a bullish run.

The stock has also previously shown resistance to the $10 level, and later retested this area as support and was able to hold. This may be a future area of support.

The stock is trading above the 200-day moving average (blue), indicating sentiment may be bullish. This indicator could hold as a support level sometime in the future.

What’s Next: Bullish traders would like to see the stock cross above the top line of the channel. If the stock is able to cross above this line and hold, it may see a further upward push.

Bearish traders would like to see the stock fail to cross above the top line and push lower toward the bottom line. A break below the bottom line in the channel could see a further move downwards.

Bearish traders would also like to see the stock fall below the $10 level and consolidate. 

By Tyler Bundy