This Stock Looks To Be Breaking Out As Redditors Take Charge

Express Inc. EXPR shares are flying higher Friday as retail traders push the stock. Express is a popular stock within the Reddit community alongside others such as Gamestop Corp. GME, AMC Entertainment Holdings Inc. AMC.

The stock has started moving again as Redditors begin to pump the stock. The stock trades with a 64-million-share float and 11% short interest.

Express was trading 23.6% higher at $7.07 at last check.

Express Daily Chart Analysis

• Shares are trading in what technical traders call an ascending triangle where higher lows build up to a flat resistance level.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Express Levels To Watch

• The stock held support along the trendline connecting the higher lows, and now has broken above resistance.
• The $6.50 price level held as resistance multiple times before the stock was able to break out. Now this level may hold as support.
• The Relative Strength Index (RSI) shot up past 70, indicating the stock is now overbought. The stock trading in the overbought region means there are  many more buyers than sellers.

What’s Next For Express?

As the stock is breaking out, traders will likely start to take profits and push the stock back down. This will cause the RSI to cool off as well. Bullish traders would like to see the stock bounce near old resistance with an RSI back below the overbought range before making another large push.

If the stock were to fall back below the $6.50 level, bears may take back control. Bearish traders would like to see the stock fall first back below the $6.50 level and then work down below the higher low trendline. Below the trendline and the stock could see a strong push downward and the start of a bearish trend.