Edesa Biotech Is Now Above Resistance: Can It Continue Higher?

Edesa Biotech Inc. EDSA shares are trading higher Tuesday after the company announced additional results from the Phase 2 part of the ongoing Phase 2/3 study of EB05 in COVID-19. The stock saw a large gap up early Tuesday and has been fading back down since.

Edesa Biotech is trading up 6.46% at $8.24 at last check Tuesday at publication.

Edesa Biotech Daily Chart Analysis

• Shares were able to break above resistance and have tested the area as support. Holding above the previous resistance level will show the stock has some strength.
• The $7 price level is an area the stock had found resistance in the past, and as the price now trades above could be an area of support. If this level is unable to hold again the stock may fall back to the $4 level.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has been pushing higher the past few days and now sits at 60. This indicates the stock is seeing more buying pressure than selling pressure.

See Also: Why Edesa Biotech Shares Are Trading Higher Today

What’s Next For Edesa Biotech?

Bullish traders are looking to see the stock bounce off support and begin to form higher lows. If the stock forms higher lows it may signal that the stock is starting a bullish trend.

Bearish traders are looking to see the stock be able to break back below the $7 level and start to fall further. Bears are hoping to see the stock continue to fall and drop down to the $4 support level. Bears are looking for a break below the moving averages as well for a possible change in sentiment.

Photo: This is Engineering via Unsplash