Meta Materials Climbs As Merger Vote Is About To Take Place: What Does The Chart Say?

Meta Materials Inc (NASDAQ: MMAT) shares traded higher Monday amid interest due to the vote taking place Sept. 28, 2021, for the merger with Nanotech Security Corp (OTC: NTSFF). In the merger, Meta Materials can acquire all outstanding shares of the company.

Meta Materials was up 17.83% at $6.08 at market close Monday.

Meta Materials Daily Chart Analysis

• Shares are pushing higher following the news and moving toward potential resistance near $10 in what technical traders call a sideways channel.
• More recently, the stock looks to have started forming higher lows and could form into what technical traders call an ascending triangle pattern. This higher low trendline may hold as support, if unable to hold as support the stock may fall down to the $2.50 level.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been climbing and sits at 67 showing the stock has been subject to more buying pressure than selling pressure. The RSI is nearing the overbought range starting at 70, where lots of buying pressure may be found.

What’s Next For Meta Materials?

Bullish traders would like to see the stock continue to trade with higher lows and head toward the resistance where it may eventually break out above the $10 level. Consolidation above this level is key to possible further bullish movements.

Bears would like to see the stock fall below the higher low trendline and head down toward the $2.50 resistance level. If the stock falls below the $2.50 level and begins to hold it as resistance, it may be prone to see further bearish moves.

Image by Gerd Altmann from Pixabay