GitLab Inc.
GitLab Inc. (NASDAQ: GTLB) runs a DevOps platform that delivers a single application that unites teams from development, operations, information technology, security, and business.
Noted below are the key price indicators for the stock:
Technical Observation (on the Daily Chart)
On the daily chart, GTLB prices crashed more than 60% from the high of USD 137.00 marked in November 2021. The leading indicator RSI (14-period) is moving close to the overbought zone showing a reading of ~60.36. The CMP is above the trend-following indicators 21-period & 50-period SMA, which may act as the support level for the stock, and the same can be seen in the price-taking support of the 21-period SMA since starting of June 2022. The price has gained good momentum in the last month generating a return of 41.79%, but as can be seen, has been rejected from a strong resistance range of USD 55-USD 60.
As per the above-mentioned price action and technical indicators analysis, a ‘Watch’ rating has been given on Gitlab, Inc. at the closing price of USD 54.35 (as of July 01, 2022), with further analysis and update once the price breaks the strong resistance range of USD 55-USD 60 with decent volume.
Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.
Note 1: Investment Related Risks: This report may be looked at by Investors with sufficient risk appetite looking for returns within a short investment duration. Investment recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 2: How to Read the Charts?
The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.
The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.
The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.
The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.
The reference date for all price data, volumes, technical indicators, support, and resistance levels is June 29, 2022. The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
RSI: Relative Strength Index
USD: United States dollar
Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.
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