Watch These Arm Holdings Stock Price Levels Amid Post-Earnings Plunge

Arm Holdings (ARM) shares plunged up of Thursday’s opening doorbell aft nan British spot designer’s ray profit guidance overshadowed quarterly results that came successful supra expectations.

Projected post-earnings trading follows a heavy retracement successful nan shares of up to 32% from their grounds precocious group past period amid concerns complete nan stock’s lofty valuation and broader profit taking successful immoderate of this year’s champion performing artificial intelligence (AI) stocks. Still, since going public connected Sept. 14 past year, Arm shares person much than doubled done Wednesday’s close.

The banal was down 8.4% astatine $132.05 successful caller premarket trading.

Below, we’ll constituent retired a cardinal technical parameter connected nan Arm floor plan to show pursuing nan company’s net report, while besides identifying important value levels to watch amid a imaginable breakdown of nan stock’s longer-term uptrend.

Uptrend Line Remains successful Play

Despite caller selling, Arm shares recovered support earlier this week from a multi-month uptrend statement that stretches backmost to nan October 2023 low. 

This cardinal trendline remains successful play post-earnings, fixed nan spot designer’s banal sits poised to unfastened beneath nan parameter connected Thursday. Investors should show if bulls tin successfully take sides nan trendline, which presently sits astir $135, for a 2nd clip this week. An intraday reversal, specified arsenic a hammer candlestick aliases bullish engulfing pattern, would people a awesome displacement successful sentiment that could spot a resumption of nan stock’s longer-term uptrend.

However, a decisive volume-backed breakdown beneath nan parameter whitethorn awesome a alteration successful inclination direction, a move that could lead to a continuation of nan stock’s caller diminution from its all-time precocious (ATH).

Monitor These Levels Upon Trendline Breakdown

Upon a adjacent beneath nan uptrend line, investors should support an oculus connected 3 important support levels.

Firstly, it’s worthy eyeing a horizontal line astir $117, which could pull buying liking adjacent nan debased of a mid-February pullback that astir aligns pinch play of two-week consolidation successful May.

Further downside could spot nan value revisit nan $94 level, a location connected nan floor plan that whitethorn supply support adjacent nan opening value of nan Feb. 8 net gap.

Finally, a much terrible selloff could trigger a spread capable down to $79, wherever bulls would apt beryllium looking for buying opportunities adjacent 2 anterior grounds highs that formed successful December 2023 and January this year.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.