2 Meme Stocks Test Resistance For A Larger Move

Express Inc EXPR and Tyme Technologies Inc TYME skyrocketed in January and February after gaining the attention of the WallStreetBets community.

Now known as meme stocks, along with GameStop GME and AMC Entertainment Holdings Inc AMC and dozens of others, Express and Tyme fell into long periods of consolidation after soaring 1,078% and 202%, respectively. A number of meme stocks look to have found new bottom recently and on Monday, Express and Tyme made a move north.

The Express Chart: On Jan. 27, Express reached a high of $13.97 -- the highest the stock had traded at since November 2016. After reaching its new high Express sold off and plummeted almost 85% and has since traded in a range between $2.17 and $6.34. Since March 9, Express has held support at the $2.85 level, which appears to be its new bottom, and on Monday an uptick in bullish volume helped the stock rise up into its next resistance level at $3.82.

Last Thursday, Express recaptured support of the eight-day and 21-day exponential moving averages (EMAs) and the bullish move on Monday caused the eight-day EMA to trend up to meet the 21-day EMA. Bullish price action on Tuesday will cause the eight-day EMA to cross above the 21-day EMA, which would be bullish for Express going forward.

Express is trading above the 200-day simple moving average (SMA), which indicates overall sentiment in its stock is bullish.

Bulls want to see Express pop over resistance at $3.82 for a move back up toward the $5.00 area. If the stock was able to regain $5 as support, it could move back up toward $6.34.

Bears want to see Express continue to reject its overhead resistance and for it to lose support of the eight-day and 21-day EMAs. If Express is pushed back down toward the $2.85 level again, its support may become weakened. If Express loses that level as support, it could trade back down toward $2.17.

See Also: Is AMC Entertainment Stock About To Go Lower?

The Tyme Chart: Like Express, an uptick in volume on Monday helped Tyme’s stock to make a bullish move into its next resistance level at $1.33. Tyme was briefly able to trade over its resistance level but unable to close the day above because the stock rejected, and wicked from, the 200-day SMA. This also indicates that the overall sentiment in Tyme is bearish.

On Monday, Tyme was able to recapture the eight-day EMA and both the eight-day and 21-day EMAs have begun to turn up slightly indicating higher prices may come in the near future.

Bulls want to see bullish momentum for Tyme to pop up over resistance at $1.33 and for the stock to regain support of the 200-SMA and 21-day EMA. If the stock is able to regain the $1.30 level as support, it could trade back up near $1.61.

Bears want to see Tyme’s stock continue to reject the 200-day SMA and its overhead resistance. If Tyme continues to reject the resistances it could fall back down toward the $1.11 level and if unable to hold that level as support it could drop as low as the 91-cent mark before finding another bottom.

EXPR and TYME Price Action: Express traded up 3.7% to $3.80 at publication time, while Tyme was up 1.8% to $1.36.