Is ContextLogic Stock About To Head Lower?
Shares of ContextLogic Inc. (NASDAQ:WISH) hit resistance, or a wall of sellers, at the $15.40 level. They also hit resistance at $15.40 in April and early June. They couldnt break through those times either and downtrends followed. Now WISH shareholders need to exercise caution. There is a chance that a new downtrend is forming. Stocks often trend lower after they fail to break resistance. This occurs because some investors sense the presence of the large sellers who created the resistance. These investors are worried the sellers will eventually drive the price lower, so they sell their shares to get out ahead of it. This results in the stock forming a new downtrend.