What's Going On With BSquare Stock Today?

BSquare Corp. BSQR shares were trading much lower Wednesday after the company entered into a side letter with B. Riley Securities Inc. RILY to sell shares.

These shares will have an aggregate offering price of up to $50 million under the company’s form S-3. Shares were trending on social media sites following the large dip in price.

BSquare was down 28.09% at $5.07 at last check.

See Also: BSQUARE Raises Private Offer To Sell Shares To $50M From $25M

BSquare Daily Chart Analysis

• Shares recently broke out and cooled off and found support once again; shares now trade in a sideways channel.
• 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 BSquare Levels To Watch

• When the stock broke out, it gapped up above the $4 level and moved higher.
• After the gap up, the stock peaked near the $8 level before finding resistance and falling back down.
• The Relative Strength Index (RSI) has been rising and reached the overbought area for a time before falling back below it once again. The RSI sits at 57, meaning there are more buyers than sellers.

What’s Next For BSquare?

Bulls would like to see the stock form higher lows and head up toward resistance. If the stock can break above the $8 resistance and have a period of consolidation above the level, then the stock may be ready to see a further push up.

Bearish traders would like to see the stock fall back below the $4 support level. Bears would then like to see the stock cross below the moving averages for a potential change of trend and sentiment.