Shares of Seeing Machines Limited (LON: SEE) surged 10.6% after unveiling its 8th generation Occula® Neural Processing Unit (NPU) yesterday after the US markets closed, which is likely the main reason behind today’s rally.
From a technical perspective, investors could have predicted today’s rally from the support and resistance zones I identified in my previous coverage of the computer vision technology company.
Looking at the Seeing Machines daily price chart below, we can see that today’s rally occurred at a support level that I identified in my last article on the company.
In the above article, you can see I identified the 9.34 support level back in late July when the shares were trading above the lower support level at 7.35p.
You can also see that I highlighted the 11.93p resistance level,w which was tested in mid-August and held firm, forcing Seeing Machines shares to trade lower up to today’s rally.
That is the beauty of technical analysis; as a trader, you can use such critical levels to place trades and front-run market moves by identifying key levels before price reaches them and placing your orders in advance.
Traders who have been following the stock could have profited from the break above the 9.34p resistance level, which then turned into a support zone and launched today’s rally.
Fundamentally, Seeing Machines has many favourable tailwinds supporting its business as the driver monitoring and assistance market grows.
The video presentation launched yesterday explained in detail why Seeing Machines FOVIO chip is the go-to chip to powering cutting-edge driver monitoring systems that meet the regulatory requirements in the European Union and the United States.
*This is not investment advice.
Seeing Machines share price.
Seeing Machines shares surged 10.62% to trade at 10.41p, rising from Thursday’s closing price of 9.41p.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading