After doing some chart analysis on PURE Bioscience, I’ve come to the conclusion that a break out is imminent.
From looking at the monthly timeframe, you can see that price was riding the 50 moving average from January the 4th 2016, until the end of April 2020. In the following 2 months after April, the price went from $0.60 to $2. With this momentum, the resistance of $1.68 was broken to make a new high.
After the new high was made, my guess is, people who had been holding the stock for a substantial amount of time decided to sell. Since price had a clear break of the 50 MA, I would’ve used that as confirmations of a buy bias when price retested the MA. To add to my buy bias, the 100 MA joined the 50 when price dropped. Usually when 2 or more moving averages are tight together, it indicates a sudden movement is around the corner. It’s like winding up a toy car.
When the breakout does occur, the area of $8.68, where the 200 MA is, will be most people’s target. A sell off will most likely happen at the price point. But personally, I think with the low float, price could push all the way up to the $16 resistance. Which happens to be the 23.6% fib area on the monthly timeframe. Today price moved 1.23% with only 50,883 shares traded. This shows me that not a lot of volume is needed to move this stock, but if enough volume comes in, we could be looking at BioNano 2.0 in respect to movement in price.
From looking at the monthly timeframe, you can see that price was riding the 50 moving average from January the 4th 2016, until the end of April 2020. In the following 2 months after April, the price went from $0.60 to $2. With this momentum, the resistance of $1.68 was broken to make a new high.
After the new high was made, my guess is, people who had been holding the stock for a substantial amount of time decided to sell. Since price had a clear break of the 50 MA, I would’ve used that as confirmations of a buy bias when price retested the MA. To add to my buy bias, the 100 MA joined the 50 when price dropped. Usually when 2 or more moving averages are tight together, it indicates a sudden movement is around the corner. It’s like winding up a toy car.
When the breakout does occur, the area of $8.68, where the 200 MA is, will be most people’s target. A sell off will most likely happen at the price point. But personally, I think with the low float, price could push all the way up to the $16 resistance. Which happens to be the 23.6% fib area on the monthly timeframe. Today price moved 1.23% with only 50,883 shares traded. This shows me that not a lot of volume is needed to move this stock, but if enough volume comes in, we could be looking at BioNano 2.0 in respect to movement in price.