Elastic (ESTC) handily surpassed Wall Street’s earnings expectations and lifted its outlook, sending shares in the enterprise data software company sharply higher on Friday.

The company now sees fiscal 2025 revenue growth of 15%, up from its prior projection in August of 14%, with the boosted outlook driven by continued enterprise demand for the software maker’s 澳洲幸运5官方开奖结果体彩网:g꧋enerative artifi💖cial intelligence (AI) applications and platform consolidation.

Elastic shares were up 15% in early afternoon trading at around $108, narrowing the year-to-date loss to about 4%. Prior to Friday’s gain, the stock has been weighed down this ye🐼ar by segmentation changes that led to a lower number of customer contracts.

Below, we take a closer look at Elastic’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify 𒁏key post-earnings price levels worth watching out for.

Descending Channel Breakout

Elastic shares traded within an eight-month 澳洲幸运5官方开奖结果体彩网:descending channel before breaking out above the pattern’s upper trendline on Thursday ahead of the company’s quarterly results. Importantly, the move higher occurred on the highest 澳洲幸运5官方开奖结果体彩网:trading volume since lat𝐆e August, indicat🐬ing that some market participants had positioned for a better-than-expected earnings report.

Friday’s earnings-driven jump adds to the stock’s recent bullish price momentum, but also triggers a heavily overbought 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) reading, which could lead to near-term profit ꦉtaking.

Let’s identify two key overhead areas on Elastic’s chart that investors may be watching and also point out major 澳洲幸运5官方开奖结果体彩网:support levels to monitor during 澳洲幸运5官方开奖结果体彩网:retracements.

Key Overhead Areas to Watch

The first overhead level to watch sits around $118. This area will likely attract significant attention, given its proximity to multiple 澳洲幸运5官方开奖结果体彩网:swing highs that for🌌med on the chart between Decemb𓆏er 2023 and July this year.

A convincing close above this level could act as a catalyst for a move up to the $133 region, a chart location where investors may look for 澳洲幸运5官方开奖结果体彩网:exit points near a range of trading levels si🃏tuated just below the stock’s 2024 high.

Major Support Levels to Watch

During 澳洲幸运5官方开奖结果体彩网:pullbacks, investors should monitor how the stock’s price responds to the $94 level. An area that could encounter support near two prominent troughs that formed near the 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA) in April and May.

Finally, selling below this level could see the shares revisit lower support near $82. This area, which currently sits just above the 50-day MA, may see buying interest near the upper range of a 澳洲幸运5官方开奖结果体彩网:consolidation period that formed on the chart throughout Septem🏅ber a🐭nd October last year.

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