Pedevco Corp (ARCO: PED) soared up 35% over Monday’s closing price, at one point, on Tuesday before running into a group of sellers and retracing about 12%.
- The stock ran into a resistance zone near $2.02 at the high-of-day and rejected. The resistance level was created back in February and traders who bought near the level at the beginning of the year may have used the opportunity to exit their positions.
- The stock may have broken up bullishly from a descending channel that had been holding it down since Oct. 12.
- Bulls and bears are battling near a resistance and support level at $1.76. Bears would like to drop the stock below the level, while bulls would like to see Pedevco close the day above it.
- There is a higher-than-average volume in Pedevco’s stock, which indicates a high level of investor interest.
- Traders can watch for Pedevco to set up an inside bar for consolidation on Wednesday. Bulls would like to see the consolidation take place on low volume.
Did you find this helpful?
Feel free to send comments and feedback to melanieschaffer@benzinga.com or brent@benzinga.com
