Rubicon Technologies (RBT Stock) gained strong bullish momentum mid July, rising from the low of $0.32. The stock price surged roughly 439.30% marking a high at $1.73. The bullish momentum helped price in recovering more than 75% of the losses incurred since the start of 2023.
However, the bullish momentum could not sustain and faced strong rejection above $1.70 which induced strong bearish momentum in the price. The stock fell roughly 61% from the high of $1.73.
Rubicon technologies printed bearish candles from August 4th to 10th. The previous candle was bullish; the new support level is $0.67.
Reason Behind Upswing In Rubicon Technologies Stock Price
Palantir, a big analytics company, recently bought 6 Million more shares of RBT stock. Palantir now has a stake of 6.2% in Rubicon technologies. The analytics company signed a deal with the Rubicon in 2022 and which required it to purchase the shares.
Palantir has acquired 5.69 Million shares of RBT stock since March 31. Now the company holds 14.63 Million shares of Rubicon. Rubicon is also one of the customers of Palantir; and Palantir has made over a dozen such investments in startups. These investments were in the spotlight due to their unusual nature; as reported by WSJ.
If price can sustain above the recent support of $0.67 and gains bullish momentum, it might retest the recent high of $1.73. On the other hand, if bears can push price below $0.67, it might fall to $0.32 triggering a roughly 52% downfall.
Will RBT Stock Price Retest $1.73 Level?
The stock price fell below the 20, 100 and 200-day exponential moving averages but still trades above 50-day EMA, indicating slight bullish strength. Chaikin money flow score is still above 0 mark and traded at 0.18 suggesting bullish momentum in the price.
However, the relative strength index has dropped below the 50 mark and is currently trading at 48.44 indicating a rise in bearish pressure and dominance shifting to the selling side. RSI entered into the overbought zone which resulted in the reversal. The bollinger bands have expanded indicating a rise in volatility.
Conclusion
Recently, Rubicon reported positive Q2 financial results. The company crushed the estimates of revenue and earning per share. The market structure and price action of RBT stock turned bearish after the formation of high at $1.73. Technical parameters are currently favoring the selling side.
Technical levels
Major support: $0.67 and $0.32
Major resistance: $1.73 and $2.00
