QuantumScape stock reaches new three-year high as rally continues for ninth session

QuantumScape (QS), the leading commercial developer of solid-state batteries, has now rallied for nine consecutive sessions. This has led the battery maker to a new three-year high with shares reaching $15.03 in Friday's afternoon session.

QuantumScape continues to benefit from news of its state-of-the-art Cobra separator process reaching production goals, which will allow the company to begin commercializing its battery technology over the next two years.

The broader market has seen investors head for the exit after a positive week that saw many new index highs. The S&P 500 has gained above half a percentage point this week, while the NASDAQ Composite has tacked on another 1.4% gain through five sessions. However, the NASDAQ Composite was the only one of the three major indices to advance on Friday, in this case by 0.05%.

Building Permits and Housing Starts both printed better than expected on Friday morning, and survey results from the University of Michigan showed Consumer Inflation Expectations falling sharply.

Shareholders are excited for QuantumScape to release a quarterly business update next Wednesday, July 23, where the market expects management to lay out an updated roadmap for commercialization prospects.

QuantumScape technical analysis

QuantumScape stock traded above $15 per share on Friday for the first time since May 2022. Though QS stock has seen many rallies over the past three years, this one is the longest and strongest by far. QuantumScape stock has risen sharply for three weeks in a row following the June 24 announcement of its Cobra separator process, reducing production speeds by up to 25x.

QS weekly chart

The daily chart below shows that QS shares have reached the 261.8% Fibonacci retracement level at $14.06 and appeared to use it on Friday as support for much of the session. The next upside target is the 361.8% Fibo at $17.98 and the 423.6% Fibo at $20.41.

In the past, QuantumScape's rallies have been short-lived and haven't resulted in any higher consolidation zones, but this rally feels and looks different. One point of support might be the former resistance level near the 100% Fibonacci placeholder at $7.72. Another is the 161.8% Fibo at $10.14.

QS daily stock chart