Is Koss Stock Garnering Strength For Another Big Move?

Koss Corporation KOSS, a headphone designer and manufacturer, has seen bullish action in its stock recently following renewed interest from investors.

Interestingly, 77.33% of Koss’s shares are held by insiders and institutions, with a whopping 69.83% held by insiders and 7.5% held by institutions as of May 14.

In January, Koss was the target of a massive short squeeze, and its shares rose 3,387% over just four days, opening at $3.65 on Jan. 25 and skyrocketing to $127.45 on Jan. 28.

Although its stock rapidly sold off in the three days that followed, Koss has not fallen below $11.44 since the squeeze took place, and on May 25 a large bullish engulfing candle stick set Koss’s stock up for a momentous move higher. 

The Koss Chart: May 25 marked a reversal for Koss when it put in a higher high on the daily chart. After pushing up 70% over the course of another four trading days between May 25 and May 28, Koss has begun to consolidate right near a support and resistance zone near the $26 mark.

Koss is trading above both the eight-day and 21-day exponential moving averages, and the eight-day EMA is trending above the 21-day EMA, both which are bullish signs.

Koss’s stock is slightly extended from the commonly followed EMAs, however, but continued consolidation will help the EMAs catch up and potentially help Koss make another bullish push. Koss is also trading well above the 200-day simple moving average, indicating overall sentiment in the stock remains bullish.

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Bulls want to see the eight-day and 21-day EMAs catch up, continue to curl upward and push Koss’s stock up over resistance at $26.12. If Koss can close over that level it has room to move towards $33.99 before meeting another resistance zone. The more times Koss hits its head on the upper resistance, the weaker that resistance will become.

Bears want to see the $26 level continue to act as resistance and for bearish volume to drop Koss back down under the eight-day and 21-day EMAs. A loss of the EMAs could push Koss’s stock down towards $18.88 and a loss of that level as support could drop the stock down toward $15.57.

KOSS Price Action: Shares of Koss were trading 13.25% higher at $27.35 at last check Wednesday.