Shares of AST SpaceMobile, Inc. ( ASTS ) are rising Wednesday after the satellite designer and manufacturer announced a significant commercial agreement.

ASTS stock is showing exceptional strength. See if it is worth your attention here.

What To Know: AST SpaceMobile ( ASTS ) signed a 10-year commercial agreement with telecom company STC Group to enable direct-to-device satellite mobile connectivity across Saudi Arabia and other countries in the Middle East and Africa. STC has committed to a prepayment of $175 million for future services and made a long-term commercial revenue commitment.

Shares of AST SpaceMobile ( ASTS ) were trading up nearly 4% at last check, according to Benzinga Pro.

Under the agreement, the first in the region for AST SpaceMobile ( ASTS ), the company will build three ground gateways in Saudi Arabia and establish a Network Operations Center (NOC) in Riyadh to support the network's operations and service quality. The partnership aims to eliminate connectivity gaps by delivering 5G and 4G LTE services directly to standard mobile phones without the need of any specialized software or device support or updates.

"We are pleased to partner with stc as the first regional operator to collaborate with us on this groundbreaking initiative,” said Abel Avellan, CEO of AST SpaceMobile ( ASTS ). “This partnership is another major leap forward to deliver on the promise of truly universal mobile broadband coverage, bridging the digital divide and empowering millions with reliable and easy-to-use connectivity.”

ASTS Analysis: AST SpaceMobile ( ASTS ) is trading approximately 35.9% above its 50-day moving average of $58.81 and a substantial 103.5% above its 200-day moving average of $39.26. The relative strength index (RSI) stands at 56.29, indicating a neutral momentum that suggests the stock is neither overbought nor oversold at this time. This technical positioning may allow for further upside potential if buying interest continues.

Resistance is identified at $91.41, which could act as a psychological barrier for traders looking to capitalize on upward movements. With the stock trading significantly below its 52-week high of $102.79, there remains room for growth, particularly if positive sentiment persists in the market. The absence of calculated support levels suggests that the 50-day moving average may serve as a critical support point, providing a cushion for any potential pullbacks.

ASTS Price Action: AST SpaceMobile ( ASTS ) shares were up 3.93% at $80.84 at the time of publication on Wednesday, according to Benzinga Pro. The stock is trading within its 52-week range of $17.50 to $102.79, and has a significant year-to-date performance of 269.3%.

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