Where's Recon Technology Stock Headed After Plummeting Friday?
Recon Technology LTD. (NASDAQ:RCON) shares plummeted lower Friday after the companys subsidiary Beijing BHD Petroleum Technology Limited signed two contracts with North China E&P Company. With these contracts, the company will provide technical service with ultra-deep electric submersible progressing cavity pumps to one gas well at the Dongsheng Field of the Second Gas Production Plant. Recon Technology was down 50.05% at $6.36 at last check. Recon Technology Daily Chart Analysis  The stock saw a large drop Friday and is trying to find support near a previous level that held as support. The stock crossed below the 50-day moving average (green) Friday and is trading above the 200-day moving average (blue), indicating the stock is likely entering a period of consolidation.. The 50-day moving average may be a place where the stock finds resistance, while the 200-day moving average is somewhere that may hold as support. Key Recon Technology Levels To Watch  Recon Technology saw a huge dropoff after breaking below the higher low trendline and is looking to find support near the $5 level. The $5 level is an area where the stock was previously able to find support and is also a psychological level for many traders. The stock may find support near this level again. If the stock is unable to hold the $5 level as support, then this level may be an area where the stock finds resistance. Bullish technical traders would like to see the stock find support near the $5 and bounce. Bulls want to see the stock begin to form higher lows on the chart and start forming a new higher low trendline. Bearish technical traders would like to see the stock break below the $5 support level and head lower. If the $5 level is able to hold as resistance after breaking below, then the stock may see another downward push.