Monitor Corning's price levels as stock rises on positive AI demand outlook
Keep an eye on Corning's stock as it rises on optimism surrounding increased demand for AI technologies, influencing its price levels.
Corning's stock surges on AI demand, technical analysis insights
Corning (GLW) shares have risen 16% over the past two trading sessions, reaching their highest levels since May 2021. The specialty glass manufacturer upgraded its current-quarter outlook, attributing the boost to increased adoption of its optical connectivity products in generative AI applications.
Analyzing Corning's weekly chart, the stock rebounded sharply from late October, breaking out of a descending channel and recording its highest weekly trading volume since February 2018. The relative strength index (RSI) indicates strong bullish momentum but also suggests the stock is significantly overbought with an RSI above 80.
Corning approaches multi-year high amid bullish momentum
Corning's shares rose 0.7% to $45.00 in premarket trading, marking a significant uptick. Investors are closely monitoring the potential for the stock to retest its previous high of $46.82 from April 2021.
Using a bars pattern analysis from the pandemic-era low to the April 2021 high and applying it to last year’s low, analysts forecast a longer-term price target around the $60 mark. This optimistic projection reflects the ongoing bullish sentiment and strong momentum driving Corning's stock price upward.
With increasing demand for its optical connectivity products in AI applications, Corning is well-positioned to capitalize on market opportunities, contributing to its upward trajectory towards multi-year highs.
Key chart levels to watch during profit-taking periods
During profit-taking phases, it's crucial for investors to monitor specific chart levels where Corning shares might attract buyer interest at lower points.
Initially, a potential pullback could target around $39 to fill this week’s gap, supported by price action between January 2021 and March 2022.
A further decline could test the $35 region, marked by significant historical peaks and troughs, and aligned with the 200-day moving average.
Below these levels, strong support is anticipated near $31, reinforced by a long-term trendline dating back to July 2017.
Investors should remain vigilant of these key levels to gauge potential entry points and market sentiment amid fluctuations in Corning's stock price.
