The WISH stock price may not be as exciting as it once was, but there are signs that ContextLogic could be setting up for a rally.
ContextLogic Inc (NASDAQ: WISH) started the week with a positive trading day, finishing Monday at $10.47, higher by $0.64 (+6.51%).
Considering the volatility in the first seven months of 2021, the WISH stock price has been fairly muted recently. Formerly a favourite of Reddit’s wallstreetbets investing forum, ContextLogic Inc experienced two notable spikes higher this year.
In January, shares in the online retailer surged 88% to a record $32.85. However, by the 7th of June, the stock was lower by 77% and changing hands at $7.52. Although, 48-hours later, WISH had doubled to $15.00.
Since then, the stock has been unable to advance past $15.80 and subsequently has spent the last month fluctuating around $10.00.
Although the stock may not be the talking point, it was previously, the price shows some encouraging signs of life.
The daily chart shows the price is holding above a rising trend line support at $9.50. The line from June’s low has held on a closing basis for the last two months. Therefore, this should be viewed as a significant level of support.
Furthermore, the WISH stock price is attempting to hurdle the 50-day moving average at $10.68. However, despite several attempts over the last couple of weeks, it is yet to close above this threshold. On that basis, if ContexLogic closes above $10.68, it will add to the positive outlook.
Should that happen, the 100 DMA at $11.85 is the first target for the bulls. Following that, June’s 15.18 high comes next.
The bullish view stays intact as long as WISH remains above the rising trend at $9.55. A close below this level invalidates this thesis and suggests a return to $7.52 is possible.
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