Archer Aviation Inc. (NYSE:ACHR) consolidated on Tuesday. The shares gained almost 20% yesterday after the company announced a partnership with defense firm Anduril.
But the move higher may soon end. The shares are getting close to a resistance level. This is why Archer is the Stock of the Day.
• Archer Aviation stock is trading near recent lows. Where is ACHR stock headed?
As you can see on the chart, the $5.50 level was support for Archer. Now it has become a resistance level.
Support is a price level where there is a large amount of demand for a stock. In other words, there are a lot of buy orders. This is why selloffs end when they reach support.
