Arm Holdings (ARM) shares plunged ahead of Thursday’s opening bell after the British chip designer’s light 澳洲幸运5官方开奖结果体彩网:profit guidance overshadowed quarterly results that came in above expectations.

Projected post-earnings selling follows a deep 澳洲幸运5官方开奖结果体彩网:retracement in the shares of up to 32% from their record high set last month amid concerns over the stock’s lofty valuation and broader profit taking in some of this year’s best performing 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) stocks. Still, since 澳洲幸运5官方开奖结果体彩网:going public on Sept. 14🌞 last year, Arm shares have more than doubled throug🅠h Wednesday’s close.

The stock was down 8.4% at $132.05 ꧒in 𒉰recent premarket trading.

Below, we’ll point out a key 澳洲幸运5官方开奖结果体彩网:technical indicator on the Arm chart to monitor following the company’s earnings report, while also identifying important price levels to watch amid a possible 澳洲幸运5官方开奖结果体彩网:breakdown of the stock’s longer-term uptrend.

Uptrend Line Remains in Play

Despite recent sel𓆏ling, Arm shares found support earlier this week from a multi-month uptrend line that stretches back to the October 2023 low. 

This key trendline remains in play post-earnings, given the chip designer’s stock sits poised to open below the indicator on Thursday. Investors should monitor if bulls can successfully defend the trendline, which currently sits around $135, for a second time this week. An intraday reversal, such as a 澳洲幸运5官方开奖结果体彩网:hammer candlestick or 澳洲幸运5官方开奖结果体彩网:bullish engulfing pattern, would mark a major shift in sentiment that could see a resumption of the stocꩲk’s longer-term uptren⛦d.

However, a decisive volume-backed breakdown below the indicator may signal a change in trend direction, a move that could lead to a continuation of the stock’s recent decline from its 澳洲幸运5官方开奖结果体彩网:all-time high (ATH).

Monitor These Levels Upon Trendline Breakdown

Upon a close below the uptrend line, investors should keep an eye on three important support levels.

Firstly, it’s worth eyeing a 澳洲幸运5官方开奖结果体彩网:horizontal line around $117, which could attract buying interest near the low of a mid-February pullback that roughly 🙈aligns with period of two-week c✤onsolidation in May.

Further downside could see the price revisit the $94 level, a location on the chart that may provide support near the opening price of the Feb. 8 earnings gap.

Finally, a more severe selloffಌ could trigger a gap fill down to $79, where bulls would likely be looking for buying opportunities near two prior record highs that formed in Decembe🔴r 2023 and January this year.

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