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- 1 Unity stock price fell 12% approx. in the after-hours trading session.
- 2 U stock price is in a downtrend and trading below both the EMAs.
- 3 The quarterly earnings of Unity Software Inc. beat the EPS estimates by 88.87%.
Unity stock price fell 8.68% this week and bears dragged the price to the YTD lows. The stock price seems to be in a correction phase and is forming a bearish pattern.
The U stock price is in a downtrend and trading below the 50-day and 200-day EMA. However, the current price looks oversold and has gone far away from the EMA. So, a short-term pullback rally may trigger any time from the lows.
In mid-September, Unity stock price broke down the $32.00 crucial support which triggered the panic sell-off. Later, gradually, the price continues the downfall and erodes the gains of 2023.
For the past few days, Unity shares have consolidated near the $25.00 level and buyers are trying to halt the downfall.
The quarterly earnings of Unity Software Inc. were released on November 9, 2023. It reported an EPS of $0.322 vs estimates of $0.171. The reported revenue is $544.21 Million vs $554.171 Million.
The company beat the EPS estimates by 88.87% but missed the revenue by 1.80%. The earnings were quite good. Despite that, the U stock price reacted negatively and collapsed 12% in the after-hours session.
Will Unity Stock Price Hold the $21 Support?
Unity stock price is likely to show a gap down opening near $22.00 which will raise concern for its investors. The stock has already corrected more than 50% from its 52-week-high and now another cut will erode a big portion of the market capitalization.
On the lower side, $21.18 might act as immediate support for the bulls. If buyers succeed in defending, then a short-term bounce may be visible. However, the sellers look more aggressive as compared to buyers so investors will hesitate to go long.
The analysis suggests that U stock had corrected a lot from its high. So, it may consolidate for some time before deciding the next direction.
Will the Downfall in the U Stock Price Continue?
The U stock price is inside the bears’ grip and no signs of recovery or reversal are visible. The stock formed a bearish pattern on the daily and weekly time indicating sellers’ dominance.
The MACD curve slopes sideways but after a gap down open it might reverse downward. The supertrend is already bearish and favors the bears. It denotes that until the U stock price breaks out of the $28.57 hurdle, the trend will remain down.
Whereas, the RSI is at 38, and after a gap down it may drop below 20. So, a temporary bounce may come from the oversold territory.
Conclusion
Unity stock price down 12% in the after-hours session indicates price might open a gap down near $22.00. The chart pattern is bearish and sellers look more active as compared to buyers. So, it will be difficult for the bulls to defend the $21.00 support.
Technical Levels
- Resistance levels: $28.57 and $31.66
- Support levels: $21.18 and $20.00
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.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
