C3.ai, Inc (NYSE:AI) hit an all-time low of $27.52 following a bearish reaction to its Dec. 1 second-quarter earnings print.
- The stock tested the level on the two subsequent trading days, which created a bullish triple bottom pattern on the daily chart.
- Intraday, C3.ai was struggling with a support and resistance level at the $32 mark. It would be bullish if the stock is able to close the trading session above the level.
- There is a gap above between the $32 and $33.73 range, which is likely to be filled in the future. On Tuesday, C3.ai was able to partially fill the gap.
- The daily eight-day EMA has been guiding the stock downwards and is likely to act as resistance. Bullish traders may want to wait to enter a position after the stock has regained the EMA as support.
- C3.ai has the potential for a short squeeze due to its underlying statistics. The stock has a relatively low float of 82.98 million shares and 67.09% are held by insiders and institutions. C3.ai also has 17.46%, meaning 12.88 million shares, of its float held short although the number has decreased slightly from the 13.79 million shares held short in October.
- The stock has resistance above at $36.52 and $43 and support at $32 and the all-time low.
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