Hello Pal International, Inc HLLPF has spent the last six trading days consolidating sideways after declining over 54% from its Nov. 16 high of 70 cents. On Dec. 9, Benzinga called out the potential for Hello Pal stock to drop if it broke bearishly through a descending trendline, which had been propping it up since Sept. 20.
The travel-based social media app, which offers a cryptocurrency wallet and plans to offer Dogecoin DOGE/USD and Litecoin LTC/USD mining services to customers from its "in-house" rigs, is affected by both the cryptocurrency sector and general markets although most recently the stock has been bogged down by Dogecoin and Litecoin, which have been unable to move higher.
Hello Pal may have found a bottom, however, and if Dogecoin and Litecoin can catch a break in the first-quarter of 2022 the stock has flashed several signals that a potential bounce may be in the cards.
Could Hello Pal Be A Short Squeeze Candidate? Although Hello Pal has a fairly large float with 144.62 million shares available, shorts have been piling into the stock recently. As of Nov. 15, 342,170 shares are held short, compared to 84,790 the month prior. Although the percentage of the float held short has more than quadrupled, it should be noted the total number of shares held short represents just 0.23% of the float, which is considerably small compared to many other stocks.
See Also: Why Is Dogecoin Falling Today — Can This Key Level Send Dogecoin On A Bull Run?
The Hello Pal Chart: On Dec. 21, Hello Pal bounced and wicked from the 31-cent level, and on each trading session since that date the stock has tested near that level as support and held above it. On Tuesday, Hello Pal was consolidating in a tight 1-cent range between 32 cents and the 33-cent mark under a descending trendline.
The descending trendline has been acting as an area of both support and resistance since Nov. 12 but on Nov. 24 Hello Pal fell below the trendline and hasn’t been able to close a trading day above it since that date. The stock has stopped printing lower lows, however, which could indicate a trend reversal is on the horizon if Hello Pal can break up bullishly from the trendline on higher-than-average volume.
Hello Pal’s relative strength index (RSI) has been hovering just above the 30% level since Dec. 13. When a stock’s RSI reaches or falls below that level, it becomes oversold, which can be a buy signal for technical traders. When Hello Pal’s RSI dipped below the 30% level at the end of September, the stock shot up 86% over the nine trading days that followed.
Traders not already in a position will want to watch for big bullish volume to come into Hello Pal to signal interest has returned to the stock. By midday Tuesday, only about 80,000 shares had exchanged hands compared to the average 10-day volume of 172,600.
Hello Pal is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The stock is also trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.
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- Bulls want to see big bullish volume come in and break Hello Pal up from the descending trendline, which would cause the stock to regain support of the eight-day EMA. There is resistance above at 35-cents and the 40-cent level.
- Bears want to see big bearish volume come in and drop Hello Pal down below the 31-cent mark, which would cause the stock to print a lower low to confirm the downtrend is still intact. Hello Pal has support below at 21 cents and at the 16-cent area.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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