NTES stock price reversed and fell 4.74% in the current month. It shows the initial signs of a bearish trend reversal. But the confirmation is still awaited.
NetEase stock price dropped below the 50-day EMA which shows that the bullish momentum is lost and profit booking has begun.
In the past few weeks, NTES stock price has been stuck in a range between $95.00 to $104.00.
Buyers tried multiple times to break the higher range and expand the range upward. But sellers keep on selling whenever the price hits $104.00 due to which a breakout attempt failed and prices are still inside the range.
On the lower side, $95.00 is acting as a strong support and buyers are trying their best to defend it.
If NETS stock price continues to consolidate for a few more weeks then it might be an indication of base formation. The next direction of the stock will be visible when prices break either side of the range.
NTES stock price closed the previous session at $98.57 with an intraday decline of -0.36%. The market capitalization stands at $63.573 Billion.
Will NTES Stock Price Bounce Back in October?
NTES stock price is near to the demand zone so it will be risky to create further shorts. The prices are in a short-term correction phase but it will be difficult for the sellers to pull the prices further down.
Till the NetEase stock price is above $92.00, the probability of the bounce back remains high. However, the buyers will return back to track when prices break out of the $104.00 hurdle.
On the other hand, if sellers took over the control and dragged the prices below $92.00. Then 5% to 10% more downside will open.
NetEase Stock Price Lacks Direction
NetEase stock price is forming a Doji candle on a weekly time frame. It shows indecisiveness and a lack of direction in the stock.
The price action reveals that NTES stock price looks cheap at the current level. So, investors may look to buy near $100 for the short-term target of $110.00.
The MACD curve sloping sideways shows that prices may consolidate for some more time. The RSI at 43 denotes weakness but if prices take a U-turn then RSI may reach neutral territory.
NTES stock price reversed down and fell 4.74% in September 2023. However, the price is near the demand zone so it will be difficult for bears to pull the prices further down.
The analysis suggests that the NetEase stock price looks cheap at nearly $100 and is good for long-term investment.
- Resistance levels: $104.00 and $110.00
- Support levels: $95.00 and $92.00
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