How To Play Edsa Biotech's Stock After 60% Surge

Edsa Biotech Inc. EDSA shares are trading higher after the company announced Phase 2 Data of its Monoclonal Antibody in hospitalized COVID-19 patients. Critically ill patients demonstrated a 68.5% reduction in risk of dying when treated with EB05 over standard care.

Edsa Biotech's stock is trading up 63% to $9.63 at the time of publication.

See Also: Edesa Biotech Stock Is Rallying After COVID-19 Antibody Data: What You Need To Know

Edsa Biotech Daily Chart Analysis

• Shares saw a large jump Monday and look to have broken out above resistance. This level may hold as support in the future.
• The $7 level is an area where the stock has struggled to cross above and has held as resistance in the past. After the news hit, the stock flew higher above this level and now may hold this level as support.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) flew higher after the news and now sits at 82. This is well into the overbought range where there are many more buyers than sellers.

What’s Next For Edsa Biotech?

Bullish traders want the stock to be able to hold above the $7 level and consolidate for a time. They're then looking to see the stock move higher on a possible second leg up.

Bears are looking to see the stock fall below the $7 level and begin to hold it as resistance. If this level can hold as resistance, the stock may begin to fall back down toward the $4 level where it once held as support.