Is Atossa Therapeutics Stock Breaking Important Support?

After a steep selloff, shares of Atossa Therapeutics, Inc. ATOS have reached the critical $4 level. This level was support in early June.

It had previously been a resistance level in February. But when the stock traded at a higher level, many of the investors who sold at $4 think selling was a mistake. A number of them could decide to buy their shares back.

But they will only do so if they can get them for the same price they sold at. These buy orders create support. This is why $4 turned into a support level.

Now ATOS is testing this level again, and the support may be breaking. The buyers who created the support may have left the market. With this demand for the shares out of the way, the stage could be set for a rapid move lower.

The stock was down 12.56% at $3.94 at last check Monday.