This Stock Just Made a Bullish Move

Serve Robotics Inc. (NASDAQ: SERV) seems poised for a price surge based on its latest charts. The company designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots.

Serve Robotics’ strategy involves enhancing the efficiency of delivery services for QSR vendors through its autonomous robots. With the continued partnership with Uber and the anticipated growth from the planned robot deployment, the company seems positioned for significant expansion in the near future

Bullish Indications

#1 Symmetrical Triangle Pattern Breakout: The daily chart shows that the stock had recently formed a Symmetrical Triangle pattern. This is a continuation pattern and is characterized by two converging trend lines connecting a series of sequential peaks and troughs. This pattern is marked on the daily chart as purple color lines. The breakout from a symmetrical triangle pattern usually signifies a bullish move. Currently, the stock has broken out of the symmetrical triangle pattern which is a possible bullish sign.

SERV – Daily Chart

#2 Price above MA: The price is currently above the short-term moving average of 50-day SMA, indicating that the bulls are gaining control. This is a positive indication.

#3 Bullish ADX: The ADX indicator shows that the +DI line is currently above the –DI line and the ADX line has started to move up from below the –DI and +DI lines. This indicates possible bullishness.

#4 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the daily chart. This indicates possible bullishness.

#5 Above Support Area: As you can see from the weekly chart, the stock has currently moved up from a resistance-turned-support level. This level is marked as a pink color dotted line. This looks like a good area for the stock to move higher.

SERV – Weekly Chart

#6 %K above %D: The %K (blue) line of stochastic has currently crossed above the %D (Orange) line in the weekly chart and is also moving higher from oversold levels. This is a possible bullish indication.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, you can purchase shares of SERV above the price of around $12.10.

TP: Our target prices are $14.50 and $16.00 in the next 3-6 months.

SL: To limit risk, place stop-loss at $10.80. Note that the stop-loss is on a closing basis.

Our target potential upside is 20% to 32% in the next 3 to 6 months.

For a risk of $1.30, our target rewards are $2.40 and $3.90. This is a nearly 1:2 and 1:3 risk-reward trade.

In other words, this trade offers nearly 2x to 3x more potential upside than downside.

Risks to Consider
The stock may reverse its overall trend if it breaks down from the symmetrical triangle pattern with a high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.

Happy Trading!

Tara

Nvidia's Secret Partner... This Is The New AI Chip Powerhouse [sponsor]
I bet you've never heard of it... but this newly public company is set to become key to Nvidia's seat on the AI throne. And for now... you can get in while it's still cheap. Details Here! Find Out What It Is Right Here.