Chemomab Therapeutics Is Heating Up And Could See A Move Soon

Chemomab Therapeutics LTD. CMMB shares are trading higher Friday as retail traders continue to push stocks higher.

The stock is trading on above average volume and gapped up from Thursday's close. The stock only has 10 million outstanding shares, a low float that makes the stock subject to large moves.

Chemomab Therapeutics was up 13% at $22.60 at last check.

Chemomab Therapeutics Daily Chart Analysis:

• The stock pulled back in recent months, forming into what technical traders call a falling wedge pattern. The pattern broke out at the end of May and is still looking to see a large move.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.

Key Levels To Watch:

• Chemomab's stock has been forming the falling wedge pattern since a large run on Feb. 10, and now looks like it's breaking out.
• This bullish reversal pattern forms as the stock has a steeper downward trend in the highs than it does with the lows forming a wedge on the chart.
• A break out of the pattern resistance may follow with a large upwards move, while a break through the pattern support may bring about a strong downwards push.
• The stock is looking to continue to see the increasing volume that would be needed for a breakout and a large move.

What’s Next?

Bullish technical traders would like to see some volume come into the stock to potentially see a large move. The pattern looks to have broken out but likely won't move without volume. With a low float of only 10 million, the stock may move fast on high volume.

Bearish technical traders would like to see the stock fall below the pattern support and trade below the wedge pattern. If the stock were to fall below the support and consolidate for a time, the stock may see a strong downward push.