Duolingo (DUOL) surges 35% on AI momentum: Where the chart points next | FXStreet

Duolingo (DUOL), the leading language learning technology company, surged 8.53% on Wednesday, closing at $347.27. This latest move pushes DUOL’s impressive recovery to 35% since the September lows. The core fundamental catalyst driving this rally is the company’s decisive “AI-first” strategy, positioning Duolingo as a key leader in AI scalability and productivity—a narrative that investors are buying into heavily.

Technically, DUOL has been confined to an ascending parallel channel since its July 2021 IPO. The recent buying pressure allowed the stock to break out of a consolidation zone and successfully retrace a prior decline. Wednesday’s close landed precisely on the upper boundary of this inclining channel at the $347.27 mark, which now acts as immediate, temporary resistance.

The next significant resistance level sits just beyond that at $363.19.

This technical setup is strongly supported by Duolingo’s fundamentals, including robust 41% year-over-year revenue growth and impressive 70% gross margins reported in Q2. For the bulls to maintain this upward trajectory, cracking $363.19 is absolutely critical. A decisive move past that price point confirms a clear path toward the ultimate target of $425.99, implying an over 20% upside from Wednesday’s close.