Gevo Stock Is About Ready To Break Out

Gevo Inc. (NASDAQ: GEVO) shares are trading higher Friday, although there looks to be no company evident news to explain the jump in price. The stock was trending higher on social media sites such as StockTwits.

Gevo was up 5.79% at $7.16 at last check Friday afternoon. 

Gevo Daily Chart Analysis

• The stock is nearing resistance in what technical traders call a pennant pattern. The stock looks like it is ready to see a breakout in the coming days.
• The price has been pinched between narrowing highs and lows and is now near the point of the pennant. If the stock breaks out it could see a further push higher.
• The stock is trading above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
• The 50-day moving average may act as a place of support, while resistance may be found near the 200-day moving average.
• The Relative Strength Index (RSI) saw a push higher the past few days and now sits at 59 on the indicator. This shows buying pressure increased and is higher than selling pressure.

What’s Next For Gevo?

Bullish traders are looking to see the stock break above pattern resistance and begin to push higher. This could signal the stock is breaking out and ready to stop consolidating. Bullish traders are looking for a large move and a period of consolidation later.

Bearish traders are looking to see the stock get rejected at the pattern resistance and start to fall lower. Bears then want to see a break below pattern support for a possible strong downwards move.

Photo: Gevo