Unity Software Inc (NYSE:U) shares are trading higher on Tuesday as traders respond to reports that the game‑development platform company may sell its China business.
Reports Of A Potential China Sale Spark Buying
Unity shares jumped on Tuesday after Bloomberg reported that the company is weighing options for its China division, including a possible sale.
Sources familiar with the matter told Bloomberg that Unity is working with an adviser to gauge interest in Unity China and may seek a valuation of more than $1 billion — a sizable cash infusion. Discussions are still in early stages and may not lead to a deal. Unity has not yet commented publicly.
U Technical Setup Remains Deeply Bearish
Unity Software is currently positioned in a bearish technical setup, trading significantly below its key moving averages. This suggests weakness in the stock’s momentum, with Unity Software’s stock trading 31.5% below its 20-day SMA, 51.8% below its 50-day SMA and 52.9% below its 100-day SMA.
The RSI is currently at 21.59, indicating that Unity’s stock is oversold, suggesting that the stock could be due for a bounce, but it also reflects a lack of buying interest in the near term. MACD is below its signal line, indicating bearish pressure on Unity’s stock.
Key support is at $15.50, which traders should watch closely; if this level is breached, it could signal a continuation of the downtrend. Since there is no clear resistance level above, any upward movement may face significant challenges.
Over the past 12 months, Unity’s stock has declined by 33.83%, reflecting a broader trend of weakness. This long-term performance underscores the challenges the stock has faced and highlights the need for traders to remain vigilant.
U Price Action: Unity Software shares were up 5.55% at $18.08 at the time of publication on Tuesday, according to Benzinga Pro.
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