On Sunday evening, Benzinga asked its followers on Twitter what stock they’re zeroed in on this week. From the replies, Benzinga selected one ticker for technical analysis.
Many of Benzinga’s followers responded to say they’re focusing in on Vinco Ventures Inc (NASDAQ:BBIG)
Vinco Ventures resumed trading on Aug. 16 after being halted for nearly two weeks after “additional information” was requested from the company by the Nasdaq Stock Market. When the halt lifted at 12:30 p.m. ET, the stock began to soar, rallying more than 50% off the open.
Prior to the halt, Vinco Ventures announced July 25 the termination of CEO Lisa King, co-CEO Ted Farnsworth, Chief Security Officer Erik Noble and board Chairman Roderick Vanderbilt.
The day before the halt was lifted, Vinco Ventures announced a licensing agreement with AI-Pros Inc. Vinco ventures plans to use AI-Pros' technology to develop a TikTok competitor targeting the U.S. and Canadian markets. Vinco Ventures has a joint venture with Zash Global Media targeting non-U.S. and Canadian markets using the Singapore-based Lomotif app.
A massive increase in trading volume hit Vinco Ventures during the four trading days following the halt being lifted, which caused the stock to skyrocket a total of 158% higher between Aug. 16 and Aug. 18. Vinco Ventures reached a high of $1.94 on Aug. 18, where the stock rejected from the 200-day simple moving average on the daily chart and hit a volume climax, causing Vinco Ventures to decline sharply.
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The Vinco Ventures Chart: When a stock undergoes a short squeeze or soars prior to a known news event or after news has dropped, the surge higher is almost always followed by a big retracement to the downside. Bullish traders hoping to book longer-term profits on an investment prefer to see a stock move higher slowly to carve out new support levels.
- On Monday, Vinco Ventures retraced almost to the $1 level and bounced up slightly from the area. The $1 level is an important psychological area of support and resistance. Traders would like to see Vinco Ventures consolidate above the level for a period of time.
- When Vinco Ventures surged on Aug. 16, the stock negated its most recent downtrend, which began on May 18. In order to confirm Vinco Ventures is trading in an uptrend, the stock will need to print a higher low above 67 cents.
- On Monday, Vinco Ventures was working to print a doji candlestick above the $1 level, which may indicate a reversal to the upside is in the cards for Tuesday. If that happens an uptrend will be confirmed, although it’s unlikely Vinco Ventures will move on to form another higher high for some time because the stock is in need of longer-term consolidation.
- Vinco Ventures has resistance above at $1.21 and $1.55 and support below at $1 and the 67-cent mark.
