Ammo Inc. (NASDAQ:POWW) shares rallied ahead of an announcement expected Thursday from President Joe Biden on guns.
Below is a chart technical analysis.
Ammo Inc. stock ended the session 8.12% higher at $7.19.
Ammo Daily Chart Analysis: The daily chart above shows uncertainty in what the future may hold for Ammo Inc. There are two technical patterns possibly found in the chart: one bullish, one bearish.
Connecting the lows throughout the year shows the stock has built higher lows. The stock peaked near the $10 level, indicating this area may hold as resistance in the future.
Bulls would call this pattern an ascending triangle pattern (white lines). To confirm this bullish pattern, bulls would need to see the stock build higher lows up to the resistance level of $10. Consolidation above $10 may bring a higher push in time.
Following the more recent trend on the chart, bearish traders may see a head-and-shoulders pattern (red lines). This bearish reversal pattern may cause the stock to turn around and start moving downward.
For bears to confirm this pattern, the stock would have to fall below the $5.50 support line marked in green.
If the price were to be able to fall below this level, it would also break the bullish pattern further to the downside, adding to bearish sentiment.
The stock is trading above the 200-day moving average, indicating the sentiment for the stock throughout the year has been bullish. This indicator may also hold as support in the future.
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