Darktrace Share Price: Break Below 360p Sets Up a Run to All-time Lows

Summary:
• The Darktrace share price is in danger of hitting new all-time lows after a breakdown of the support level at 360.6

The Darktrace share price is up 0.6% as the stock attempts to shake off the recent price decline it has experienced following the downgrade by JP Morgan. The stock has been on the back foot ever since the company’s co-founder Mike Lynch was indicted in an HP fraud case, resulting in the approval of his extradition to face charges in the US.

The stock sank further in mid-May after its Chief Strategy Officer Nicole Eagan was also named in the scandal. A huge selloff followed, with employees and insiders selling more than 6 million stock units. In late May, JP Morgan downgraded the stock’s price target, indicating it saw the Darktrace share price at 320, representing a potential downside of 8.83% from its current price. 

Technically speaking, the Darktrace share price decline came off a rejection from the descending trendline that connects the highs of 13 April, 11 May and 9 June 2022. The accompanying downward move broke below key support and has set up the potential for the Darktrace share price to retest all-time lows. This move would surpass the Darktrace share price target set by JP Morgan. 

Darktrace Share Price Forecast

The intraday uptick has initiated a return move toward the 360.6 price mark, which is expected to function as a new resistance in role reversal. The breakdown of the 360.6 support level and the evolving triangle’s lower border negated the pattern and opened the door for a slide toward the 316.0 support level (21 February and 19 May lows).

A rejection at 360.6 price level accelerates the move south. If the bulls fail to defend the new target at 316.0, a further decline will be on the cards. This move will bring the price activity toward the all-time low of 30 April 2021 at 250.00.

On the flip side, a penetration close above the 360.6 price level opens the door for a further push toward 380.2 (5 January low and 8 June high). Above this level, additional barriers to the north reside at 438.8 (20 January and 28 April highs) and at 485.7, the site of the previous high of 25 March 2022. 

Darktrace: Daily Chart