Zomedica's Stock Approaches Important Level

Shares of Zomedica Corp. ZOM are trading higher after the company released earnings. If the stock continues to rally, there's a chance it runs into sellers around the 72-cent level. This could pause or halt the rally.

In April and May when Zomedica's stock dropped to this level, shares found support and a rally followed. But now the price is lower. Many of the investors who paid 72 cents now regret their decision to buy. A number of these remorseful buyers make up their minds to sell.

They're reluctant to take a loss though. As a result, they will be placing their sell orders at 72 cents. This way they can exit the position without taking a loss. If there are enough of these sell orders, it will create resistance.