Why Did Data Storage Stock Fly Today?

Data Storage Corp. DTST shares gained a lot of ground on Wednesday. Shares were moving on heavy volume with no apparent company-specific news.  

Data Storage Daily Chart Analysis

• The stock had a large gap up Wednesday morning and broke above a previous 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 Data Storage Levels To Watch

• The stock saw a gap up past resistance today above the $10 level; the $10 level was somewhere previously where the stock struggled to cross above.
• The next level of resistance that may be found is up near the $15 level, as this was also an area where the stock struggled to cross above.
• The Relative Strength Index (RSI) is high and above the overbought area. The RSI is sitting at 80, indicating there are many more buyers than sellers in the stock.

What’s Next For Data Storage?

Bulls would like to see the stock be able to hold above the potential $10 support level. If the stock can see a bounce at this level, then bulls would like to see the stock start forming higher lows toward the $15 resistance.

Bearish traders would like to see the stock fail to hold the $10 level and not hold it as support. Bears would also like to think the stock is nearing its top as it is in the overbought range. Berish traders would like to see the stock begin to fall and eventually fall below the moving averages for a possible trend change.