Globalstar Inc. (NYSE:GSAT) shares are trading higher Wednesday, possibly bouncing back after the stock saw a strong down day on Tuesday after the company did not receive a partnership with Apple Inc. (NASDAQ:AAPL), despite rumors that a collaboration between the companies could be happening.
Globalstar was up 5.43% at $1.85 at last check Wednesday afternoon.
See Also: Why Globalstar Shares Were Falling
Globalstar Daily Chart Analysis
The stock is possibly bouncing back after breaking out of the pennant pattern, the stock may be entering into a consolidation period now.
After being condensed between narrowing highs and lows, the stock saw a large push higher. Now the stock is falling and possibly consolidating, but traders should be wary that there was no partnership and this may play a part in the future of the stock.
The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
Each of these moving averages may hold as a possible area of support in the future.
The Relative Strength Index (RSI) has cooled off the past few days and pushed back down to 50 as sellers moved into the stock. This means there is now equal buying and selling pressure in the stock.
What’s Next For Globalstar?
Bullish traders are looking to see the stock bounce and start to form higher lows. This could indicate the stock is ready to continue uptrending.
Bearish traders are looking to see the stock drop some more and fall back to where it was trading in the pennant pattern. If the stock can see a push below the pattern support it may be ready to see a further bearish push.
Photo: Globalstar