AITX stock price analysis: technicals point to a 32% dip

By:
on Feb 20, 2024
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  • AITX share price has crashed by over 44% from the YTD high.
  • Other AI companies like Soundhound and Nvidia have soared.
  • Technical analysis points to a sharp decline in the coming weeks.

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Artificial Intelligence Technology Solutions (AITX) stock price has been left behind in the ongoing AI surge. The highly popular penny stock was trading at $0.0028 on Friday, where it has been stuck at in the past few days. This price is about 44% below the highest point this year and 81% below its highest level in 2023.

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AI companies are thriving

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A key theme in the financial market this year is the growing popularity of artificial intelligence stocks. Nvidia has led this charge as it transitioned into the fourth-biggest company in the world after Microsoft, Apple, and Saudi Aramco.

Super Micro Computer (SMCI) stock has also jumped sharply in the past few months, making it one of the best-performing companies in Wall Street. Other top performers are Soundhound and AMD.

AITX, on the other hand, has not done well even as its daily volume has jumped. According to Yahoo Finance, the average three-month volume stood at over 80 million shares. At the current price, this average volume is worth over $240k, which is substantial for a small company like AITX. Its volume on February 12th stood at over $112 million.

AITX stock price has crashed even as the company posted a positive update in January. Its SaaS revenue jumped by 383% YoY. Its booked recurring monthly revenue (RMR) jumped by 476% from a year earlier. It expects that it will add about $50k in deployments in February. In a statement, the company’s CEO said:

“Breaking the $500K RMR milestone keeps us on track to hit the immediate big target of $700K RMR, which should bring SaaS revenues within the range of operationally positive cash flow, which is a huge milestone for us and any company for that matter.”

For beginners, AITX is a company that operates in three key divisions: RAD, RADM, and RADG. RAD creates stationary workflows while RADM makes mobile workflows or robots. RADG, on the other hand, is a software company that creates autonomous remote services. Its products are deployed by companies like banks and security firms.

AITX stock price forecast

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AITX stock

AITX chart by TradingView

AITX share price has been in a strong bearish trend in the past few months. It has formed what looks like a double-top pattern whose neckline is at $0.0025. It is now hovering near the neckline of this pattern.

Further, the shares have remained below the 50-day and 25-day Exponential Moving Averages (EMA). In most cases, this is usually a sign that bears are in control. Therefore, the outlook for the AITX stock is bearish, with the next target to watch being at $0.0019, the lowest swing in December. This price was about 32% below the current level.

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