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This Energy Company Is Gearing Up And Looks Ready For A Breakout

CleanSpark Inc. (NASDAQ: CLSK) shares gained more than 5% Friday after the company reported second-quarter EPS and sales results that were up year-over-year.

05/07/2021 16:42

CleanSpark Inc. (NASDAQ:CLSK) shares gained more than 5% Friday after the company reported second-quarter EPS and sales results that were up year-over-year.

CleanSpark is an advanced software and controls technology solution company focused on solving modern energy challenges. The company posted earnings of 28 cents per share and net income of $7.4 million.

CleanSpark shares ended Friday's session 5.87% higher at $19.30. clskdaily5-7-21.png

CleanSpark Daily Chart Analysis

  • The stock has been falling throughout the last few months into what technical traders call a falling wedge pattern.
  • The stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue), indicating the stock is likely trading in a period of consolidation.
  • The 50-day moving average may hold as a place of resistance and the 200-day moving average may be somewhere the stock finds support in the future.

Key CleanSpark Levels To Watch

  • The stock has been trading within the falling wedge pattern while also nearing a key level where it previously was unable to break.
  • The falling wedge pattern is considered to be a bullish reversal pattern, and the stock could see an upwards move if it can cross above the resistance line that forms from connecting the highs.
  • The chart history shows that the $15 level was a place that the stock struggled to cross for a period of time. Now that the stock is above this level, it may hold as support.

What’s Next For CleanSpark? 

Bullish technical traders would like to see the stock bounce near the $15 level and start heading higher. A cross of the resistance line in the pattern hints to traders that the stock may be ready to break out and move higher.

Bearish technical traders would like to see the stock fall down to the $15 level and break below. Consolidation below this level could be a tell that the stock is ready to move lower. If the price is unable to hold the 200-day moving average, sentiment may start turning bearish in the stock.