Vistagen stock price (NASDAQ: VTGN) surges 676% on 7 August 2023. It was the biggest single-day rise in the stock which is mainly due to the wild short squeeze.
VTGN stock price is attempting to break out of the $20.00 hurdle but prices faced rejection. It shows that sellers are active and continuing their dominance.
Vistagen stock breakout of the 50-day and 200-day EMA shows initial signs of a trend reversal. But the confirmation is still awaited. It will be interesting to see how prices react in the coming few sessions.
For the past year, VTGN stock consolidated in the wide range of $2.00 to $8.00. Buyers tried many times to break the higher range but faced rejection. However, the previous move was speculative and lacked genuine buying.
In the recent up move, the sudden rise in the buying volume is also visible. However, this volume is generated by the short sellers so might be also considered speculative.
Vistagen Stock Price closed the previous session at $13.05 with an intraday rise of 676.79%. The market capitalization stands at $104.20 Million.
Will Vistagen Stock hold the higher levels?
Vistagen stock price (NASDAQ: VTGN) has not performed well in the past one year and traded in a wide range.
The sudden rise in stock prices ahead of quarterly earnings looks abnormal. Therefore, the possibility of holding the higher levels remains low, and very soon the prices will erode the gains.
Vistagen Therapeutics Inc. scheduled the quarterly earnings on August 15, 2023. Equity analysts estimated an EPS of -0.68 and revenue of $184.6K.
If the company succeeds to beat the estimates then the stock might try to test the $20.00. Else, the stock will again drop below $10.00.
VTGN stock showed a speculative spike
VTGN stock showed a speculative spike which cleaned out the previous short positions. Therefore, the fresh short build might be visible after the release of quarterly earnings.
The MACD curve rises above the zero line and the histogram bar is on the rise indicating bullishness. The RSI at 95 reached the overbought territory so the prices are likely to take a downside reversal.
Conclusion
Vistagen stock price (NASDAQ: VTGN) shot up 676% in a single day. The recent rally looks speculative and buyers will face difficulty to hold the higher levels. The technical suggests speculators are active in VTGN stock so it’s better to avoid.
Technical levels
- Resistance levels: $20.00 and $24.00
- Support levels: $10.00 and $6.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/08/08/vistagen-stock-surges-676-speculators-active-in-vtgn-stock/