Butterfly Network Inc

Butterfly Network, Inc. is a digital health company. The primary business of the company is selling the Butterfly iQ medical imaging equipment. The Butterfly iQ is a portable whole-body ultrasound device with a single probe that makes use of semiconductor technology. Its Ultrasound-on-Chip technology, an ultrasound transducer with whole-body imaging capabilities, powers its devices.

Technical Observation (on the daily chart)

BFLY price has been in a downward trend since August 2022 and has corrected by 76.61% since then. The price is currently near its 52-week low with continuous rejections from the 50-day SMA. Moreover, the momentum indicator RSI (14-period) is around the over-sold levels and shows a reading of ~41.97, with currently a consolidation between USD 1.85 to USD 2.10. A break in any of the sides from the consolidation range will decide the trend in the near-term future. Lastly, the prices are trading below the trend following indicators 50-Period SMA and 200-Period SMA, which may act as a dynamic resistance level in the near term.

As per the above-mentioned price action and technical indicators analysis, a ‘Watch' rating has been given to Butterfly Network Inc at the current price of USD 2.01 as of March 20, 2023, at 10:05 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 20, 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.

Disclaimer

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