C3.ai (NYSE: AI) stock price has emerged as one of the biggest beneficiaries of the ongoing AI rally. The rally, which began after the launch of ChatGPT3, has generated astronomical returns for the holders of the AI stocks. The shares of C3.ai are currently 217% up from their December 2022 lows.
On Wednesday, the US stocks had another losing day. The benchmark indices, S&P 500 and Nasdaq 100, closed after losing 32 and 172 points, respectively. This also led to a decline in C3 AI stock which plummeted 8.67%, closing the day at $32.87.
A lot of market analysts are skeptical of the ongoing rally in the stocks of AI companies. Many conventional tech companies have also jumped on the bandwagon by starting to develop AI-based products. The biggest examples in this regard are AMD, Nvidia, Microsoft, and Google.
However, after generating massive returns, the AI rally seems to have overextended, and a correction seems almost imminent. The major pullback in C3.ai stock price in the past few days is a testament to that. Nevertheless, bulls are still very much in control as the bears try to claw back.
As visible on the following chart, NYSE: AI is currently 32% down from its yearly peak of $48.87. However, the bullish market structure of the stock remains intact as it is yet to make a lower low on its daily chart. In my previous analysis, I precisely predicted the top of the rally.
The bulls need to hold $31.69 to avoid a significant downside. An acceptance below this level will significantly impact my C3.ai stock price prediction. In this case, the first bearish scenario could be a retest of the upward trendline around $27.
In the meantime, I’ll keep sharing the updated C3 AI stock price forecast and my personal trades on my Twitter where you are welcome to follow me.
This post was last modified on Aug 10, 2023, 10:54 BST 10:54