NetSol Technologies

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NetSol Technologies ( NTWK) designs, develops, markets and exports proprietary software products to customers in the automobile finance and leasing, banking, health care and financial services industries internationally. This stock closed up 4.8% to $7.59 in Thursday's trading session.

Thursday's Range: $7.27-$7.64
52-Week Range: $5.70-$14.01
Thursday's Volume: 232,000
Three-Month Average Volume: 222,998

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From a technical perspective, NTWK ripped higher here right off some near-term support at $7.20 with above-average volume. This stock has been downtrending badly for the last two months, with shares dropping sharply from its high of $12.10 to its recent low of 7.03. During that downtrend, shares of NTWK have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed shares of NTWK into oversold territory, since is relative strength index reading recently dipped well below 30. This spike higher on Thursday could be signaling that the downside volatility for NTWK could be over in the short-term.

Traders should now look for long-biased trades in NTWK as long as it's trending above its recent lows of $7.20 or $7.03 and then once it sustains a move or close above Thursday's high of $7.64 with volume that hits near or above 222,998 shares. If we get that move soon, then NTWK will set up to re-test or possibly take out its next major overhead resistance levels a $8.71 to its 50-day moving average of $9.43.

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