C3.ai, Bullish Falling WedgeContinuing to look at C3.ai the chart appears that a bottom might be near. A falling wedge pattern is well defined within the LongTerm Downtrend. Also within that as identified in a light blue horizontal box is the current trading channel of approximately 6 weeks.
The TSI is still relatively weak but overall neutral along with the MFI. The most recent bearish formation is the Bearish 50 day EMA Cross of the 200 day EMA. As C3.ai has been topping out along the upper trendline of the falling wedge I believe a low of $23.50 can still be made before the wedge formation is completed and C3.ai breaks out to the upside. Measuring the backside of the wedge, the height gives us a range of $9.40 from the breakout point so if $23.50 is the number that take's it back to $32.90 for a 40% move and that coincides with the Top Trendline of the Long Term Price Channel When it does breakout the first line of resistance will be at $26.60 and that would be good for 13.2%. Overall I believe the worst is over and that going into the next financials to be reported in 6 weeks there is more Upwards potential than not. A breakout above $26.60 will take C3.ai to the target price of $32.90. Please note that for the past 2 months trading volume has been fairly weak and for validation of the breakout from the Falling Wedge, trading volume should increase by 25-50% or more daily.
