My QuantumScape (QS) stock forecast was right: What next now?

QuantumScape (NYSE: QS) stock price has been one of the biggest winners this week. The shares surged by more than 14% on Thursday and reached a high of $13.20, which was the highest level since August 11. In all, the stock has jumped by more than 120% from the lowest level this year.

Encouraging QuantumScape earnings

QuantumScape stock price surged, as I predicted in this article I wrote on June 4th. At the time, I wrote that the shares would jump to over $10 citing its robust balance sheet and progress in its technology.

QuantumScape published encouraging results this week. In a statement, the company said that its capital expenditures came in at $25 million in Q2. Its operating expenses came in at $124 million.

The company maintained its forward guidance. It expects its capex to be between $100 million and $150 million while its operating expenses will be between $225 million and $275 million. Most importantly, the company has $900 million in liquidity, which it hopes will run until 2025.

In addition, QuantumScape seems like it is making progress at a faster pace than expected. In a note, an analyst at Truist said that, “QuantumScape appears to be at least on track with timelines provided last quarter (if not slightly ahead).”

There are risks for investing in QuantumScape. For example, there are risks that the technology will not work as advertised. Further, there are risks of rising competition since companies are already building their solid-state batteries.

Toyota is one of the biggest companies in the industry. In a recent statement, the company said that it had made a major breakthrough. The company hopes that its batteries will charge faster and have a longer range.

QuantumScape stock price forecast

QS chart by TradingView

The daily chart shows that the QS stock price has been in a strong bullish trend in the past few months. It managed to move above the important resistance level at $10.54, the highest level on February 16th. 

The stock jumped above the 50-day and 200-day moving averages. And the two MAs are about to form a golden cross pattern, which is usually a bullish sign. The Negative Volume Index (NVI) has drifted upwards and is nearing the 255 moving average.

Therefore, the outlook of QuantumScape share price is mildly bullish, with the target being at $15. A drop below the support at $8.52 will invalidate the bullish view.

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