Shares of collaboration software maker Atlassian (TEAM) will remain in focus on Monday after last week’s 9% gain.

Still, the company’s shares are down more than 35% year-over-year. Earlier this month, the stock hit a 52-week low after the company issued a weak revenue outlook below Wall Street estimates and announced the resignation of Chief Sales Officer Kevin Egan. But the stock’s recent turnaround suggests that worries about revenue growth and leadership changes may be largely foregone.

Below, we analyze Atlassian’s chart and turn to technical analysis to identify key price levels that investors are likely to keep an eye on.

Stock trading within a descending channel

Since hitting a 2024 high in January, Atlassian shares have traded in an orderly descending channel, a chart pattern that indicates a downtrend but can also signal a trend reversal if it breaks out.

Recently, the stock has risen about 14% from its 52-week low following the release of earnings and recorded four consecutive days of gains between Tuesday and Friday of last week.

The stock rose 5% on Friday to close at $154.21.

Higher price levels observed

Looking ahead, investors should keep an eye on three key higher price levels that Atlassian stock could test as price momentum increases.

The first is around $168, an area on the chart where resistance from the striking November 2023 swing low, the upper trendline of the channel, and the downward sloping 50-day average converge.

A move above this level could push shares to the $187 mark and face selling pressure near a trend line that connects several highs and lows between February last year and July this year.

Ongoing buying could fuel a move to $215, a level where sellers would be happy to take profits near a horizontal line connecting the three peaks formed on the chart between September 2023 and April.

Support areas worth monitoring

Despite the recent upward movement in the share price, it is worth keeping an eye on several key support areas.

An initial decline from current levels could see shares return to the $130 area, a region where they could attract buyers looking for entry points around the May 2023 swing low.

Failure to hold this level will result in a retest of the $116 level near the channel’s lower trendline, where the price would likely find major support from three key lows formed on the chart between November 2022 and January 2023.

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At the time of writing, the author does not own any of the securities mentioned above.