Lyft Stock: Will LYFT Stock Price be able to fill the gap zone?

• Lyft Stock Price (NASDAQ: LYFT) stuck into the narrow range of consolidation.
• The Lyft Stock sustaining above the 50 day EMA.
• LYFT Stock Price recovered 30% from the 52 week low.

Lyft Stock Price (NASDAQ: LYFT) recovered 30% approx from the 52 week low and buyers succeeded to keep the price above $10.00. 

From the past couple of months, Lyft Stock Price is consolidated in the narrow range between $8.00 to $12.00 and shows signs of base formation. Presently, the price is near the higher range and buyers are trying their best to expand upward. 

LYFT Stock price climbed above the 50 day EMA shows the short term trend is working in the favor of bulls. However, the downward sloping 200 day EMA is coming closer which might act as an immediate hurdle for the bulls. 

If buyers succeed to climb above the 200 day EMA then the positional trend will turn bullish and regain the confidence of investors. In February, Lyft Stock Price fell 36% in a single day after quarterly results. 

LYFT Prices created a wide gap which turned into a strong supply zone. Buyers tried multiple times to fill the gap but it only got rejection from the gap zone. Therefore, until the gap gets filled the prices are expected to remain in the bear grip. 

Lyft Stock Price is closed the previous session at $10.26 with an intraday decline of -2.75%. 

Will the recovery continue in LYFT Stock?

Lyft Stock Price up by 13% in the current month and trading near to the 3 months high. If the buyers are able to hold the price above $9.00 the more upward momentum is possible. 

However, the LYFT stock will pick up momentum when buyers break out of the $12.00 hurdle. 

On the other hand, If Prices drop below $9.00 then the recent up-move will be considered as a trap. Bears will try to test the lows or prices will continue to consolidate in the previous range. 

The technical analysis suggests, LYFT stock price is in the initial phase of trend reversal and more upward momentum is possible.

When the next phase of rally began in LYFT Stock 

LYFT Stock price is rising upward from past 3 weeks by forming higher high candles. The next phase of rally in Lyft stock will begin only after the $12.00 breakout. If the breakout happens then prices might journey toward $16.00. 

Another possibility is prices might expand upward and begin to consolidate in the range between $12.00 to $16.00.

The MACD curve is rising upward and displays positive crossover indicating buyers are returning back to track. The RSI at 58 denotes strength of bulls and more upside is open. 

Conclusion

Lyft Stock Price (NASDAQ: LYFT) recovered 30% from the lows and created a hope for the trend reversal. But the confirmation will come when buyers are able to break the $12.00 hurdle. The technical analysis, LYFT stock is in recovery mode and more rally is pending. The Prices might consolidate in the gap zone before turning bullish on a positional basis.

Technical levels

Resistance levels: $12.00 and $16.00

Support levels: $7.85 and $6.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.