What To Watch For As Second Sight Stock Gaps Higher On Vision Study Results

Second Sight Medical Products Inc. EYES shares gapped up Wednesday morning following the two-year results from the company’s Orion Study in visual prosthetics. 

Four out of five patients are able to better identify the direction of motion of a bar moving across a computer screen with the Orion System on, with only one adverse event occurring. 

Second Sight was up 33.2% at $6.66 at last check.

Second Sight Daily Chart Analysis

• Second Sight shares look to be trading in what technical traders may call a falling wedge pattern.
• The stock is trading below the 50-day moving average (green), but above the 200-day moving average (blue), indicating the stock is most likely facing a period of consolidation.
• The 50-day moving average may hold as resistance, while the stock may find support near the 200-day moving average.

Key Second Sight Levels To Watch

• The stock is trading in a falling wedge pattern and would need to break above resistance to see a further push up.
• This bullish reversal pattern after the stock makes a large run up and starts pulling back. The slope of the line connecting the highs is much steeper than the line connecting the lows.
• A break above resistance could let the stock move higher, while a break below resistance may hint that the stock is not done falling.

What’s Next For Second Sight?

Bullish technical traders would like to see the stock break above the resistance line and see a higher move. If the stock breaks out and moves higher, bulls want to see the stock begin to form higher lows.

Bearish technical traders would like to see the stock fail to break out of the falling wedge pattern. They would like to see the stock break below the line that connects the lows and see a lower push.