Precipio Surges 140%, Breaks Out Of A Falling Wedge Pattern

Precipio Inc. PRPO shares surged 140% Monday after the company successfully launched its COVID-19 rapid antibody test that tests for both IgG & IgM antibodies. Testing for antibodies will let people know if they have previously been exposed to the virus or have been vaccinated.

Precipio holds the exclusive right to distribute the product on Amazon Inc.'s AMZN platform. 

Precipio Daily Chart Analysis

• Precipio looks to have broken out of what technical traders may call a falling wedge pattern.
• The stock crossed above both the 50-day moving average (green) as well as the 200-day moving average (blue) Monday. This indicates the sentiment of the stock is most likely turning bullish.
• The moving averages are areas on the chart that may hold a support level unless the price makes a strong move downwards through them.

Key Levels To Watch

• The stock has been falling the past couple of months forming into a falling wedge pattern before breaking out Monday.
• This pattern is considered a bullish reversal pattern as connecting the highs shows a much steeper drop compared to connecting the lows of the chart, forming a wedge.
• Precipio shares were able to cross above the lines connecting the highs. The shares jumped further following the breakout.

What’s Next?

Bullish technical traders would like to see the stock consolidate for a period of time while holding some of the gains from the jump Monday. The stock may now show resistance near the $4.25 level as this was the high at the top of the falling wedge pattern. A bullish trader would like to see the price cross above this level for a possible further move up.

Bearish technical traders would like to see the stock fall back to the levels it was at while it was trading within the falling wedge pattern. If the price is able to fall below these levels, it could be prone to a steep drop.

Precipio had over 50 million shares traded, and considerably, a large amount of activity. Some other penny stocks trading with over 50 million volume Friday include Sundial Growers Inc. SNDL, Farmmi Inc. FAMI and Castor Maritime Inc. CTRM