TeraWulf (NASDAQ:WULF) stock slipped dramatically Wednesday as the broader tech sector experienced a sell-off.
Broader Tech Stock Sell-Off Hits TeraWulf Stock
The downturn in TeraWulf on Wednesday appears to be driven by investors rotating out of technology stocks. The recent acquisition of two strategically located infrastructure sites by TeraWulf had initially boosted its stock earlier this week. However, the overall market sentiment overshadowed these gains, leading to a sharp drop in share prices.
According to recent market updates, the S&P 500 is off by 1.03%, and the Nasdaq is down 2.28%, reflecting the broader tech sector’s struggles. The decline in TeraWulf’s stock aligns with the performance of tech and AI-related companies.
Market analysts, such as Josh Brown, CEO of Ritholtz Wealth Management, have noted that these periods of tech stock sell-offs are not uncommon. Brown stated on CNBC’s “Halftime Report” that “some of the most popular trades of the previous uptrend just get absolutely nuked,” highlighting the volatility inherent in momentum stocks when the momentum fades.
WULF Stock Dips Below Key Levels
TeraWulf is trading 7.4% below its 20-day simple moving average (SMA) and 3.1% below its 100-day SMA, suggesting short-term weakness. Over the past 12 months, shares have increased 145.56%, and the stock is positioned closer to its 52-week highs than lows, indicating a longer-term bullish trend.
The RSI is at 57.91, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. This combination suggests that while the stock is experiencing a pullback, there may still be underlying strength.
The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that traders should watch for potential reversals or continued consolidation.
- Key Resistance: $14.50
- Key Support: $11.50
WULF Stock Slips In Regular Trading
WULF Price Action: TeraWulf shares were down 16.08% at $12.43 at the time of publication on Wednesday, according to Benzinga Pro data.
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