The Darktrace share price is up 3.57% this Monday as the bulls aim to force recovery from recent lows that have plagued the stock. Since touching off the 316.0 price level on 19 May, the Darktrace share price has gained 20.2% as it aims to initiate a recovery from recent lows.
The recent decline in the Darktrace share price was triggered by the offloading of more than 6 million shares by employees and management in April. In addition, an attempt at recovery in mid-May was truncated after the UK High Court indicted co-founder Mike Lynch of overstating the value of his company Autonomy before its sale to Hewlett Packard for $11 billion. Lynch is facing extradition to face charges in the US.
In an attempt to insulate Darktrace from the situation, the company has dissociated itself from the Lynch situation, despite Chief Strategy Officer Nicole Eagan being named in the court judgement as a notable figure involved in the sale of Autonomy. As a result, since 24 September 2021, the Darktrace share price has lost more than 60% of its value.
Darktrace Share Price Forecast
The emerging ascending triangle could be a bottoming pattern if it results in a bullish break above 380.2 (15 December 2021 low and 24 May 2022 high). This break opens the door for a measured move that targets the 438.8 resistance (15 March low and 5/29 April highs).
An advance beyond this level opens the door toward the 485.7 resistance (1 December 2021 and 15 March 2022 highs). Additional upside targets are found at 549.6 and 641.3 (12 August 2021 high), with 600.0 (18 August 2021 high) also serving as a psychological resistance and potential pitstop before 641.3 becomes a reality.
On the flip side, a decline below the 19 April/6 June 2022 lows at 360.6 invalidates the triangle and points toward the 5 May 2021/19 May 2022 lows at 316.0. If the bulls fail to defend this support, the 30 April 2021 all-time low at 250.0 becomes the new target for the bears.