Paltalk Stock Is Flying High Again: Why, And What's Next?

Paltalk Inc. PALT shares are rallying higher Thursday after the company said it has retained ClearThink Capital, a strategic advisory firm, to develop and deploy a comprehensive investor outreach and communications program.

Paltalk was trading 27.67% higher at $10.71 midday Thursday. 

Paltalk Daily Chart Analysis

• The stock was forming higher lows up toward a resistance level, but recently saw a huge move and was able to break above resistance. The old resistance level may now hold as a support level.
• The $8 price level was an area where the stock had struggled to cross above in the past. Now, after the large move above this area, this stock is looking to hold this level as an area of support.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been flying higher alongside price and moved up to 92. This is well into the overbought area, showing the stock is seeing a majority of buyers and not many sellers.

See Also: What's Going On With Paltalk Stock Today?

What’s Next For Paltalk?

Bullish traders are going to see the stock likely cool off in the near future. When this happens, they would like to see a period of consolidation and want to see previous resistance begin to hold as support. This may follow with a continuation of the rise in price in time.

Bearish traders are looking to see this move be similar to a pump and dump and for the stock to start falling fast in the next few days. If the stock could fall back below the higher low trendline, it may continue to fall lower.