An ascending triangle pattern has formed in the chart of Newborn Acquisition Corp. (NBAC). This is a bullish pattern and if the resistance level is surpassed, a breakout could ensue.
NBAC operates as a blank check company or special acquisition special purpose acquisition company (SPAC). A SPAC is designed to take companies public without going through the traditional IPO process.
NBAC launched in February 2020 when it raised $50 million by selling 5 million shares at $10 each. It announced it would bring Nuvve, an EV charging company, public. Nuvve offers vehicle-to-grid solutions. In other words, when cars are plugged in and not in use, they can contribute back into the grid.
Take a look at the 1-year chart of NBAC below with my added notations:
Chart of NBAC provided by TradingView
Over the past two months, NBAC has hit the $21.50 resistance (red) on two different occasions. In addition, the stock has been climbing a trend line of support (blue) since the beginning of December. Together, these two lines have formed an ascending triangle on NBAC. Eventually, the stock will have to break either the $21.50 resistance or the triangle support.
A long trade could be made if the triangle resistance level of $21.50 is broken.
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NBAC shares fell $0.40 (-2.26%) in premarket trading Monday. Year-to-date, NBAC has gained 0.46%, versus a 2.56% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock.Breakout for Newborn Acquisition Corp. (NBAC) in the Charts? appeared first on StockNews.com