Recon Technology LTD. (NASDAQ:RCON) shares plummeted lower Friday after the company’s subsidiary Beijing BHD Petroleum Technology Limited signed two contracts with North China E&P Company.
With these contracts, the company will provide technical service with ultra-deep electric submersible progressing cavity pumps to one gas well at the Dongsheng Field of the Second Gas Production Plant.
Recon Technology was down 50.05% at $6.36 at last check.
Recon Technology Daily Chart Analysis
- The stock saw a large drop Friday and is trying to find support near a previous level that held as support.
- The stock crossed below the 50-day moving average (green) Friday and is trading above the 200-day moving average (blue), indicating the stock is likely entering a period of consolidation..
- The 50-day moving average may be a place where the stock finds resistance, while the 200-day moving average is somewhere that may hold as support.
Key Recon Technology Levels To Watch
- Recon Technology saw a huge dropoff after breaking below the higher low trendline and is looking to find support near the $5 level.
- The $5 level is an area where the stock was previously able to find support and is also a psychological level for many traders. The stock may find support near this level again.
- If the stock is unable to hold the $5 level as support, then this level may be an area where the stock finds resistance.
What’s Next For Recon Technology?
Bullish technical traders would like to see the stock find support near the $5 and bounce. Bulls want to see the stock begin to form higher lows on the chart and start forming a new higher low trendline.
Bearish technical traders would like to see the stock break below the $5 support level and head lower. If the $5 level is able to hold as resistance after breaking below, then the stock may see another downward push.
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