On Wednesday morning, Benzinga asked its Benzinga Pro community which tickers they’d like analyzed. From the replies Benzinga selected three tickers for technical analysis.
Pro user ScottRay wanted to see a technical analysis on Sphere 3D Corp (NASDAQ: ANY), while Rodney_Beasley chose Warrior Met Coal, Inc (NYSE: HCC) and mlnltrdr is watching United Natural Foods, Inc (NYSE: UNFI).
All three stocks look bullish heading into the remainder of the week although any bullish chart can be negated by a turn in the overall markets.
See Also: 5 Stocks To Watch For October 6
The Sphere 3D Chart: On Sept. 30 and Oct. 4, Sphere 3D created a double bottom pattern at the $5.62 level, under a descending trendline that has been holding the stock down since Sept. 15. On Wednesday they opened higher and bust up through the descending trendline, which is bullish.
Sphere 3D then fell slightly lower and back-tested the descending trendline as support. The stock is battling to regain the $6.52 level and close the trading day above it, likely in sympathy with uncertainly in the market.
The stock is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. Sphere 3D is also trading above the 200-day simple moving average (SMA), which indicates overall sentiment is bullish.
Sphere 3D has resistance above at $6.52 and $7.36 and support below at $5.62 and $4.46. Sideways consolidation on low volume may be needed for a larger move north.
The Warrior Chart: Warrior made a high of $28.40 on Tuesday and on Wednesday began consolidating the move. The sharp rise higher paired with a few more days of consolidation has settled the stock into a potential bull flag pattern on the daily chart, with the pole created between Sept. 29 and Oct. 5 and the flag beginning on Wednesday.
The consolidation on Warrior’s stock is needed to drop the relative strength index (RSI) back down to a more comfortable level. On Wednesday the stock’s RSI measured in at about 73%, which put it square into overbought territory. When a stock’s RSI exceeds 70%, it's a sell signal for technical traders.
Like Sphere 3D’s stock, Warrior is trading above the eight-day and 21-day EMAs and the 200-day simple moving average, which should give bulls confidence moving forward.
Warrior has resistance above at $28.40 and $30.57 and support below at the $26.51 and $24.17 levels. The bull flag will remain intact as long as Warrior doesn’t lose support of the eight-day EMA or trade down lower than 50% of the length of the pole.
The United Natural Foods Chart: United Natural has been consolidating a big 40% rise for the past four trading days. Like Warrior’s stock, United Natural looks to be settling into a bear flag pattern with the pole created between Sept. 27 and Sept. 30 and the flag formed between Sept. 30 and Wednesday.
The stock may continue to consolidate further within the flag to drop its RSI, which is still registering in high at about the 69% level. If the bull flag pattern is recognized, United Natural could eventually make another big move north toward the $60 level, which is the measured move of the flag break.
Like Sphere 3D and Warrior’s stocks, United Natural is trading above both EMAs and the SMA, which is bullish. The eight-day EMA is close by and bulls will want to watch to make sure the stock holds above the level so as not to negate the bull flag.
United Natural has resistance above at $48.85 and $52.35 while having support below at $45.72 and $41.37. Bulls will want to watch for continued decreasing volume as the stock consolidates for increased validation a move higher will come.
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