After practically three years of sideways motion, is displaying indicators of life which have my consideration. This solid-state battery pioneer, which develops revolutionary lithium-metal battery expertise for electrical autos, seems poised for what could possibly be a big breakout from its prolonged consolidation sample.
Let’s dive into what the month-to-month chart is telling us. QuantumScape peaked at astronomical ranges throughout the 2021 SPAC and EV mania, reaching heights that now appear virtually surreal. However what’s fascinating is how the inventory then spent the higher a part of three years constructing a strong basis across the $10-15 vary. That’s textbook base-building conduct, and it’s precisely what you wish to see earlier than a significant advance.
The present value motion has introduced QS to what I’m calling a serious resistance stage round $14-15. This zone has acted as a ceiling a number of occasions over the previous yr, making it a key battleground between consumers and sellers. However right here’s what has me intrigued — the current month-to-month candle reveals renewed energy, suggesting that consumers would possibly lastly have the ammunition to push by means of this cussed overhead resistance.
What occurs if QS clears this hurdle? The upside potential turns into genuinely compelling. Utilizing Fibonacci retracement evaluation from the 2021 highs, we are able to map out logical value targets. The 25% retracement sits round $35, whereas the 38.2% stage targets roughly $52. Much more formidable bulls would possibly eye the 61.8% retracement close to $83.
In fact, we’re coping with a speculative battery expertise firm right here, so volatility comes with the territory. The corporate’s path to commercialization stays unsure, and any setbacks in growth might ship shares tumbling again towards help.
For danger administration, a decisive break under $10 would invalidate this bullish setup and recommend the base-building part wants extra time. But when QS can muscle its means above $15 with conviction, we may be witnessing the early phases of a considerable rally.
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