Catenae Innovation shares plunge 8% in long-term support, will it last?
Shares of Catenae Innovation PLC (LON: CTEA) dipped 8% to trade in the long-term support zone around 1.77p. Will the level of support hold?
The company’s shares have a history of price spikes quickly followed by pullbacks after making positive announcements in the past.
The support level has been maintained since June 2020, highlighting its importance as a level at which the price has increased in the past. However, nothing is guaranteed in the markets.
Catenae’s actions recently rallied around rumors that the UK government is using its blockchain identity software for the COVID-19 vaccination passport system, but this has yet to be confirmed by relevant authorities.
The company recently acquired a controlling stake in Hyperneph Technologies, a cloud hosting and data center technology company, to help expand its services, but that was not enough to spark a sustained rally.
We cannot rule out a possible spike on subsequent positive announcements from Catenae, as has happened in the past, which triggered price spikes, ensuring that the company’s stock price remains above the crucial level of support.
Catenae stock is likely to rebound off the support level from a technical standpoint based on past price activity. However, nothing is guaranteed in the markets as stocks could fall below the level and fall if market conditions are different.
* This is not investment advice.
Catenae Innovation share price.
Catenae Innovation shares plunged 8% to trade at 1.84 pence, down from Friday’s closing price of 2.00 pence.
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