Here's Why Buyers Came Into Nano-X Imaging Thursday

Nano-X Imaging Ltd NNOX shares climbed higher Thursday after the company announced it submitted a 510(k) premarket notification application to the U.S. Food and Drug Administration for the first version of its multi-source Nanox.ARC 3-D digital tomosynthesis system.

Nano-X Imaging was up 11.47% at $31.19 at last check Thursday.

Nano-X Imaging Daily Chart Analysis:

• Shares were falling the past few months, but now look to have broken out what technical traders call a falling wedge pattern.
• The stock gapped above the 50-day moving average (green) Thursday, but trades below the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
• The 50-day moving average may hold as an area of support, while the 200-day moving average is somewhere the stock may find resistance.

Key Levels To Watch:

• Nano-X Imaging broke out of a falling wedge pattern after the stock went and tested an old support level.
• This bullish reversal pattern happens after the stock makes a large runup and starts pulling back. The slope of the line connecting the highs is much steeper than the line connecting the lows.
• The $20 level has previously held as support, the stock found support here right before breaking out of the wedge pattern. The stock may find support near this level again in the future.

   

  What’s Next?

  Bullish technical traders would like to see the stock consolidate for a time before the stock may see another move. Bulls want to see the stock hold the gains it made as it consolidates.

  Bearish technical traders would like to see the stock fall back to the area it was trading at in the wedge. Bears would also like to see the stock fall below the $20 support level and push lower.

  (Photo: Harlie Raethel via Unsplash)