Shares of Catenae Innovation PLC (LON: CTEA) plunged 8% to trade at the long-term support zone around 1.77p. Will the support level hold?
The company’s shares have a history of price spikes quickly followed by pullbacks after making positive announcements in the past.
The support level has held since June 2020, underscoring its importance as a level at which the price has turned higher in the past. Still, nothing is guaranteed in the markets.
Catenae’s shares recently rallied on rumours that the British government would use its blockchain identity software for the COVID-19 vaccination passport system, but this is yet to be confirmed by the relevant authorities.
The company recently acquired a majority stake in Hyperneph Technologies, a cloud hosting and data centre technology company, to help expand its services, but this was not enough to trigger a sustained rally.
We cannot rule out a possible spike on the following positive announcements from Catenae, as has been the case in the past, which triggered price spikes, ensuring that the company’s share price remained above the crucial support level.
Catenae shares are likely to bounce off the support level from a technical perspective based on past price activity. However, nothing is guaranteed in the markets as the shares could break below the level and head lower if the market conditions are different.
*This is not investment advice.
Catenae Innovation share price.
Catenae Innovation shares plunged 8% to trade at 1.84p, dropping from Friday’s closing price of 2.00p.