Marathon Digital’s stock chart appears to be bursting
Marathon Digital Holdings Inc. (NASDAQ:MARA) shares are trading higher amid an update from the company on its Bitcoin mining operations. The company said it was able to produce 196 bitcoins in the first quarter.
Marathon Digital’s stock is up 115% at $56.35 at press time.
Marathon Digital Daily Chart Analysis: The chart above shows that the stock has been on an upward trend throughout the past year.
The uptrend can be seen by connecting the lows on the chart with a line and observing that the line is positively sloping. This line is a potential area of support in the future.
These lows are built up to a resistance line in what technical traders may call an “ascending triangle” pattern. The ascending triangle pattern is a bullish continuation pattern.
The resistance line the stock built up to was $50, an area where the stock previously struggled to break above. This is a potential area for a rebound and a key area to consolidate above.
The stock is trading well above the 200-day moving average (in blue), indicating that sentiment towards the stock has been bullish throughout the past year. This indicator can serve as support if it can catch up to the price.
And after: Bullish technical traders would like to see the stock bounce near a support level for a possible entry point. A period of consolidation above the $50 level could send the stock higher down the road.
Bearish technical traders would like to see the stock break below the $50 support level and consolidate before the stock falls further.