Celsius Holdings stock price has bounced back in the past few weeks. CELH share price has rebounded from a low of $21 in February this year, to the current $45, its highest level since August 24. It has jumped by over 115% from the lowest point this year.
Celsius Holdings stock price technical analysis
The daily chart shows that the CELH stock price has bounced back in the past few months as investors bought the dip. It has recently formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. A golden cross is one of the most bullish patterns in technical analysis.
Celsius Holdings share price has jumped above the 23.6% Fibonacci Retracement level. It is approaching the 38.2% retracement point at $50.
CELH stock recently moved above the crucial resistance at $40, where it formed a small double-top pattern. The Relative Strength Index (RSI) and the MACD indicators have continued rising, a sign that it is gaining momentum.
Celsius has also formed an inverse head-and-shoulders pattern, a popular bullish reversal sign.
Therefore, technicals suggest that the Celsius stock price will continue rising as bulls target the next key resistance level at $60, the 50% Fibonacci Retracement level.
A drop below the key support at $40 will invalidate the bullish CELH stock price forecast.
Key catalysts for the CELH stock price
There are a few reasons why the Celsius stock price is in an uptrend. First, the company recently closed the purchase of Alani in a $1.8 billion deal.
Alani manufactures premium energy drinks, supplements, and other nutrition products. It made over $605 million in 2024 and had an adjusted EBITDA of $88 million.
Most of its revenue comes from premium energy drinks, while the others are in products like shakes, pre-workout, and snacks. Celsius hopes that Alani will help it reach more female clients, who make up most of its customers.
Celsius Holdings and Alani Nu had a combined annual revenue of $1.96 billion in 2024 and a net income margin of 12%. The deal is expected to yield approximately $50 million in annualized synergies.
Traders anticipate that the deal will help bring Celsius back to growth. The most recent financial results showed that Celsius’ sales dropped by 7% in Q1 to $329 million. This was a big reversal for a company that was recording double-digit growth in the past few months.
Most of the decline came from North America, where revenue dropped by 10% to $306 million. This slowdown was offset by the 41% surge in its international sales, which rose to $22.8 million.
Celsius Holdings’s profits also plunged, with the net income falling by 43% to $44 million and the diluted EPS falling to 15 cents.
Analysts anticipate that Celsius Holdings revenue will surge by 58% in the current quarter to $636 million because of Alani’s purchase. This growth will translate to an annual revenue of $2.18 billion and $2.66 billion next year.
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