Why Did Medley Stock Soar Today?

Medley Management Inc. MDLY shares are flying Thursday as retail traders push the stock higher. The stock was a great candidate for retail traders to push higher as the stock has a very low float.

The stock has a float of only 3.8 million shares and saw above average volume Thursday, making it a perfect storm to see a large move.

Below is a technical analysis of the chart. Medley Management was up 58.05% at $9.23 at last check.

Medley Management Daily Chart Analysis:

• Shares were trading in what technical traders call a falling wedge pattern. On Thursday, the stock saw a breakout above pattern resistance.
• The stock gapped above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock is likely turning bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Levels To Watch:

• Medley Management broke out of the falling wedge pattern and is looking to move more.
• The bullish reversal pattern happens following a large run up. The stock then cools off and gets squeezed between the highs and lows. The highs are typically at a much steeper slope than the lows.
• The breakout of the pattern happened and the stock moved higher. Now a period of consolidation may need to happen before the stock makes a further move.

What’s Next?

Bullish technical traders would like to see the stock consolidate for a time while holding its gains. If the stock is able to hold gains and consolidate, it may be ready for its next leg up.

Bearish technical traders would like to see the stock fall back to the area inside of the wedge. Bears would also like to see the stock fall below the moving averages for a possible trend change.