This morning, leading cloud software stock, Slack Technologies Inc (WORK) is falling sharply after reporting earnings. The earnings topped estimates, but billings came in lower than expected. The stock is trading lower by 15.0% to $24.87 a share. Traders should note that WORK stock has declined below its important 200-day moving average. This technical formation puts the stock in a very weak position on the charts. WORK shares have also made lower highs on the daily chart confirming the current downtrend for the stock. This will often indicate lower share prices in the near term.
Traders and investors should now watch the $21.50 area for major chart support. This is a major retrace level for the stock which should be defended by the institutional crowd. This level is also where the stock reversed and broke out in March 2020. I will be looking to get into a long side trade in WORK stock around this level.
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