(MELA - Get Report)
This is a medical device company engaged in designing and development of a non-invasive, point-of-care instrument to assist in the early diagnosis of melanoma. This stock is trading up 5% to $1.89 in recent trading.
Today's Range: $1.80-$1.95
52-Week Range: $1.65-$5.13
Volume: 1.14 million
Three-Month Average Volume: 194,475
From a technical perspective, MELA is bouncing higher here right above its 52-week low of $1.65 with monster upside volume. This stock has been downtrending badly for the last two months, with shares plunging from a high of $3.15 to its recent low of $1.65. During that move, shares of MELA have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed MELA into oversold territory, since its relative strength index (RSI) reading was well below 30. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher.
Traders should now look for long-biased trades in MELA as long as it's trending above its 52-week low of $1.65, and then once it sustains a move or close above some near-term breakout levels at $1.90 to $2.10 with volume that hits near or above 194,475 shares. If that breakout triggers soon, then MELA will set up to re-test or possibly take out its next major overhead resistance levels at $2.25 to its 50-day moving average at $2.33. Any move above $2.33 would then put $2.50 into focus for shares of MELA.
To see more stocks that are making notable moves higher today, check out the
Stocks Under $10 Moving Higher
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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