Why This Bitcoin Mining Stock Is Trading Higher Wednesday

LM Funding America Inc LMFA shares are trading slightly higher Wednesday after the company further expanded its cryptocurrency mining business.

The company announced it purchased an additional 4,000 S19J Pro Antminer Machines for a price of $25.3 million to further expand the company's mining capabilities.

LM Funding America is trading up 0.31% at $4.45 at last check Wednesday.

LM Funding America Daily Chart Analysis

• Shares have been pushing slightly higher the past few days and are nearing resistance in what technical traders call a sideways channel.
• The $5.50 price level is an area the stock has found resistance in the past and may hold as resistance again in the future. The $3.50 level is an area the stock has seen support in the past and it might be somewhere the stock could find a bounce in the future.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) has been moving slightly higher throughout the past week or so and now sits at 51. This shows that the stock has seen an increase in buying pressure and it is now greater than the amount of selling pressure in the stock.

What’s Next For LM Funding America?

Bullish traders want to see the stock continue to form higher lows and work its way up to the resistance level. Bulls would then like to see the stock cross above resistance and begin to hold the level as support. This could cause a further bullish push in time.

Bears are looking to see the stock fall below the support level and begin to hold it as resistance. This could cause a further bearish push in time. Bears are also looking to see the stock be able to stay below the moving averages for sentiment to stay the same.

Image by WorldSpectrum from Pixabay