An ascending triangle pattern has formed in the chart of Newborn Acquisition Corp. (NBAC). This is a bullish pattern and if the resistance level is surpassed, a breakout could ensue.
NBAC operates as a blank check company or special acquisition special purpose acquisition company (SPAC). A SPAC is designed to take companies public without going through the traditional IPO process.
NBAC launched in February 2020 when it raised $50 million by selling 5 million shares at $10 each. It announced it would bring Nuvve, an EV charging company, public. Nuvve offers vehicle-to-grid solutions. In other words, when cars are plugged in and not in use, they can contribute back into the grid.
Take a look at the 1-year chart of NBAC below with my added notations:
Chart of NBAC provided by TradingView
Over the past two months, NBAC has hit the $21.50 resistance (red) on two different occasions. In addition, the stock has been climbing a trend line of support (blue) since the beginning of December. Together, these two lines have formed an ascending triangle on NBAC. Eventually, the stock will have to break either the $21.50 resistance or the triangle support.
A long trade could be made if the triangle resistance level of $21.50 is broken.
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NBAC shares fell $0.40 (-2.26%) in premarket trading Monday. Year-to-date, NBAC has gained 0.46%, versus a 2.56% rise in the benchmark S&P 500 index during the same period.
About the Author: christian
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More…
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