A Technical Look At Jumia's Chart

By Tyler Bundy7 days ago

Jumia Technologies AD (NYSE: JMIA) shares fell 13% Tuesday. Stocks trading lower may be driven by a dip in the tech sector, pulling the rest of the market down with it.

Jumia is scheduled to report earnings on May 11 before market open.

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Below is a technical analysis of the chart.

Jumia Daily Chart Analysis

  • Jumia shares look to be forming what technical traders may call a head and shoulders pattern.
  • The stock is trading below both the 50-day moving average (green), and crossed below the 200-day moving average (blue) Tuesday, indicating sentiment in the stock looks like it’s turning bearish.
  • These moving averages may both hold as a resistance level in the future.

Key Levels To Watch

  • The head and shoulders pattern happens after the stock pulls back steeply and buyers are unable to push the price to new highs.
  • This bearish reversal pattern can be confirmed when the price is able to cross below the support levels formed by buyers earlier.
  • The $32 level is an area the chart has been able to find buyers at before, but recently shares of Jumia dropped below this potential support line. This hints that the stock could see a further push to the downside while sentiment remains bearish.

What’s Next?

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