Callaway Golf Co (NYSE:ELY) shares are trading higher Wednesday, possibly after the company announced the proposed public offering of three million shares of its common stock by PEP TG Investments LP.
Callaway Golf was up 11.05% at $30.04 at last check Wednesday.
Callaway Golf Daily Chart Analysis
- The stock looks to have bounced off support in what technical traders call a falling wedge pattern.
- The stock is falling and looks to be getting squeezed between the highs and the lows. A break of support or resistance could push the stock further in the same direction.
- The stock was rejected at the 50-day moving average (green) Wednesday and unable to cross above, but the stock crossed above the 200-day moving average (blue), indicating the stock is possibly seeing sentiment turn bullish.
- The 50-day moving average may act as resistance, the 200-day moving average may act as support in the future.
- The Relative Strength Index (RSI) pushed higher and crossed above the middle line Wednesday, sitting at 55. The RSI shows there’s now more buying pressure than selling pressure in the stock.
What’s Next For Callaway?
Bullish traders are looking to see the stock move higher up toward pattern resistance. Bulls would then like to see a strong above-average volume move breaking out of the pattern.
Bearish traders would like to see the stock fall lower and drop below the pattern support. If pattern support is broken the stock may see a further bearish push.