You Ask, We Analyze: What's Happening With Alpine 4 Stock?

On Sunday evening, Benzinga asked its followers on Twitter Inc TWTR which two companies they are investing in for the month of October and why. From the replies, Benzinga selected one ticker for technical analysis.

@ConfusedWorker1, @Exuptoy, @sendJamesatweet, @fustero_jaso, @Rjoshua2, @ChocolatePepsi1, @TheStockMasterr, @RichD76656085, @jonathan5tymes, @shahzaibbabyy, @Inu5cmNBwE4mnHh, @ChrisRo43094421, @curtisjordann, @GainzRichy and @Weilcep are investing in Alpine 4 Holdings Inc ALPP this month.

Alpine 4 Technologies is a publicly-traded holding company that has business-related endeavors in automotive technologies, electronics manufacturing, fabrication technologies and clean energy solutions.

@ChocolatePepsi1 wrote: “The bleeding price the last 8 months is a result of impatient sellers as ALPP try to up list, but it likely surpasses it’s ATH within a few months on NASDAQ. Great fundamentals.”

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The Alpine 4 Chart: Alpine 4 made a massive move north on Friday, soaring 42.95% on huge volume. There were 2.38 million shares that exchanged hands during the trading session compared to the 10-day average of 644,930. Above-average volume indicates a high level of interest in a security.

The huge move to the upside caused Alpine 4 to print a massive bullish Marubozu candlestick, which indicates higher prices may come in the future. In the pre-market session on Monday, Alpine 4 was trading up another 12.45% higher.

Friday’s price action caused Alpine 4’s relative strength index (RSI) to reach near the 80% level. When a stock’s RSI reaches or exceeds 70%, it puts the stock square into overbought territory, which is a sell signal for technical traders. Although an RSI can remain extended for a long period of time, it always corrects eventually and bullish traders will want to see some consolidation in the future.

Alpine 4 is trading above the eight-day and 21-day exponential moving averages (EMAs) and if the stock continues to trade higher over the coming days the eight-day EMA will cross above the 21-day, which will be bullish. On Friday, Alpine 4 was able to regain support at the 200-day simple moving average, which indicates overall sentiment in the stock is bullish.

• Bulls want to see sustained big bullish volume although consolidation will be needed at some point. There is resistance able at $3.20, $3.38, $3.55 and $3.85.
• Bears will want to watch for a volume climax to indicate the bulls have run out of steam and have begun to take their profits out. There is support at $2.95, $2.52 and $2.38.

Photo by Joshua Earle on Unsplash