Alfi Inc. (NASDAQ: ALF) Shares soared Tuesday after the company announced it had reached a deal with All-Niter to execute, prepare and ship 10,000 digital tablets to Uber and Lyft drivers .

Tablets are machine learning models that allow content publishers to deliver information without violating user privacy.

Alfi stock was trading up 60.7% to $ 5.48 in the last check.

Analysis of Alfi’s daily chart

  • Stocks trade in what technical traders call a pennant pattern. The stock appears to have broken the trend on Tuesday and saw a significant spread.
  • The action is very recent and has been around for less than 50 days, meaning there is no 50 or 200 day moving average to look at.
  • The Relative Strength Index (RSI) shows a big jump into the overbought region on the indicator.

Key Alfi levels to watch out for

  • The shares appeared to have broken away from the pennant patterns and flew on Tuesday. The stock hit new all-time highs on Tuesday.
  • The pennant pattern occurs after a stock has made a rise and the price is then condensed between highs and lows until the price is able to break out of support or resistance.
  • The RSI shows that the stock has started to enter the area above 70; this indicates that the stock is overbought and has many more buyers than sellers. If the stock continues to stay in the overbought range, it could continue to rise throughout the week.

What’s next for Alfi?

Bullish technical traders would like the stock to continue to rise and remain overbought. What goes up must come down, and it is very likely that the stock will correct in the coming days. Bulls want the stock to hold onto some of its gains when the correction occurs and rise after the consolidation.

Bearish technical traders would like to see the stock fall back to where it was when the stock was trading in the pennant pattern. If the stock can fall below configuration support then it could see a further downward push.

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