- 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.
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.
- Resistance levels: $28.57 and $31.66
- Support levels: $21.18 and $20.00
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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.