Jumia Shares Are Ripping Higher Tuesday: What's Next?

Jumia Technologies AG - ADR (NYSE: JMIA) shares are trading significantly higher Tuesday after the company announced the highlights of its 2021 Black Friday campaign.

The company said gross merchandise value reached $150 million, representing an increase of 30% year-over-year. Orders totaled 4.3 million, representing an increase of 39% year-over-year.

Jumia Technologies was up 21% at $13.37 at market close Tuesday. 

See Also: Why Jumia Shares Are Rising Today

Jumia Technologies Daily Chart Analysis

• Shares saw a large gap up and pushed closer to resistance in a sideways channel.
• Resistance had been previously found near the $20 level before it was able to break above the level and begin to hold it as support. The price has now fallen back below this level indicating it may be an area of resistance once again. Support may be found near the $7 level as it has always been able to hold as support in the past.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock’s sentiment has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a big jump and now sits at 44 on the indicator. This shows more buyers entered the market, but overall there is still more selling pressure.

What’s Next For Jumia Technologies?

Bullish traders are hoping that after this gap up the stock will start to form higher lows and head toward the resistance level. Bulls would then like to see a period of consolidation above the $20 level. This would show that the stock can hold its gains and is likely ready for a further bullish push.

Bearish traders are looking to see the stock continue to fall as it has for the past few months and eventually go on to break below support. If the stock can hold below the $7 level it may see a further bearish push in time.

Image by Mudassar Iqbal from Pixabay