Where Could Clover Health Go In The Coming Weeks?

Clover Heath Investments Corp. (NASDAQ: CLOV) shares are trading lower Wednesday morning. The share price has fallen throughout the past week, the drop is potentially due to Lifshitz Law Firm announcing on May 2 the firm is going to start an investigation of Clover Health.

Clover Health is scheduled to release earnings on May 17.

Clover Daily Chart Analysis

• Clover Health looks to be trading within an ascending triangle pattern after the stock was able to find support.
• The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue). This indicates the stock is most likely facing a period of consolidation.
• The 200-day moving average could hold as resistance, while the 50-day moving average may be a place the stock can find support.

Key Levels To Watch

• After finding support, the stock looks like it wants to start uptrending again and head back in an ascending triangle pattern.
• The $10 level previously has held as both support and resistance. The stock held $10 as support before breaking below and started holding the level as resistance after.
• The stock started forming higher lows in March and will need to hold the trendline that connects the lows together to maintain the bullish period it’s been in spanning throughout the past month or so.

What’s Next?

Bullish technical traders would like to see the stock be able to break above the $10 and consolidate. After consolidation above resistance, bulls would like to see the stock continue to form higher lows and push higher.

Bearish technical traders would like to see the stock fail to hold the higher low support. Below this support, the stock may see a strong push downwards.