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- 1 QS stock price fell 9.27% this month and the downfall continued.
- 2 Quantumscape stock price is trading near the 52-week low.
- 3 Quantumscape Corp. stock is in a downtrend.
Quantumscape Corp. QS stock price fell 9.27% in the current month and is approaching the 52-week low. It displayed a bearish pattern and prices continued to decline by forming lower low swings.
Quantumscape stock price is in a downtrend and trading below the 50, 200-day EMA. The short-term pullbacks are facing resistance at the 50-day EMA indicating that sellers are active.
In the past few quarter earnings, QS stock price reacted violently and showed a big intraday move. So, in the coming earnings, the investors and traders should remain cautious.
The historical price behavior shows that speculators became highly active at the time of earnings. So, it increases the probability of a fake breakout and breakdown.
At present, QS stock price is in the correction phase and trading near its demand zone. So, a short-term bounce back may come to test the 50-day EMA.
However, the sellers look more active as compared to buyers so the reliability of the bounce will remain doubtful. Quantumscape stock price closed the previous session at $6.07 with an intraday decline of -0.98%.
QS Stock: Earnings May Trigger Short Squeeze
QS stock price erodes the complete gains generated in 2023 and returns back to the YTD lows. It shows that the previous up move lacks genuine buyers as this stock price is unable to hold the higher levels.
Quantumscape Corp. is expected to release its quarterly earnings on October 25, 2023. The analyst estimated an EPS of -0.187. So, if the company succeeds in beating the estimates, then it may increase the probability of a short squeeze.
However, by analyzing the earnings of the past few quarters, the probability of beating the analyst estimates remains low. Still, the short sellers must remain
careful.
Quantumscape Stock Price Formed an Inverted V-shape Pattern
Quantumscape stock price fell miserably and displayed a bearish pattern on the multiple time frame chart. On the day chart, the stock formed an inverted V-shape pattern which indicates that genuine investors had exited from higher levels.
The MACD curve sloping sideways denoting prices may continue to consolidate until earnings are out. The RSI at 39 denotes weakness but if the price shows a minor recovery, then RSI may reach neutral territory.
Conclusion
Quantumscape Corp. QS stock price fell 9.27% in October and the sell-off is still continuing.
However, the Quantumscape stock price is near the 52-week low, and quarterly earnings are scheduled for next week. So, short sellers must be careful and investors should avoid investing money in the falling knife.
Technical Levels
- Resistance levels: $7.37 and $8.25
- Support levels: $5.71 and $5.10
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
