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- 1 BRCC Stock price is consolidated for three months in a narrow range.
- 2 Black Rifle Coffee Company scheduled quarterly earnings on August 10, 2023.
- 3 BRC Stock Price (NYSE: BRCC) struggles to hold the $5.00 level.
BRCC Stock Price was down by approx 22% on a YTD basis and formed a bearish pattern at multiple time frames. BRCC Stock struggles near $5.00 but buyers look reluctant to build long positions.
BRCC Share price is in a downtrend and the 50-day EMA is acting as an immediate hurdle for buyers. The 50-day EMA slopes sideways denoting prices lacking direction and more consolidation is possible.
At the beginning of February, BRCC’s Stock price was near $6.00 and witnessed strong buying from lower levels. It rallied 40% approx in a short span of time and created hope for a bullish trend reversal. However, the momentum halted near $8.00 and prices faced sharp rejection.
BRCC Stock reverted in the downward direction and dropped below $6.00 support. It confirms that the previous rally was temporary and a trap for bulls. The downfall disturbs investors’ sentiment and stock prices hit a multi-year low.
Black Rifle Coffee Company Stock has generated negative returns which disappointed the expectation of investors. BRCC Stock price closed the previous session at $4.92 with an intraday decline of -0.20%. The market capitalization stands at $1.04 Billion.
Will Short sellers get trapped in BRCC Stock?
BRCC Stock Price took support near $5.00 and entered into the narrow range of consolidation. From the beginning of April to July, BRC stock consolidated in the range between $5.00 to $5.50.
The buyers and sellers tried multiple times to break the range on either side during that period but got rejected. However, it has consolidated for quite a long time so a short squeeze might trigger to clear out previous short positions.
Quarterly earnings are scheduled in the coming week. Due to that volatility may increase which might force the short sellers to exit.
If the BRC share price breaks the $5.500 hurdle then a sharp rise is possible. Therefore, investors and traders should beware of BRCC Stock.
Black Rifle Coffee Company (BRC) Quarterly Estimate
Black Rifle Coffee Company (BRCC) is expected to release its quarterly earnings on August 10, 2023. Market analysts estimated an EPS of -0.059 and a revenue estimate is $92.025.
If BRC met the estimates the stock price might display some positive move toward $5.50. Else, if the company disappoints then the $5.00 support level will be at risk.
BRCC Stock reacted positively in previous quarter earnings so a similar pattern is expected. However, the probability of such a pattern is low.
Conclusion
BRCC Stock Price is inside range and buyers struggle to defend $5.00. Quarterly earnings are coming near which might increase the volatility in the stock prices. Therefore, it’s time to be cautious in BRC Stock.
Technical levels
- Resistance levels: $5.85 and $6.51
- Support levels: $4.50 and $4.00
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.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
