NeuroMetrix Stock Skyrockets On FDA Update: Technical Levels To Watch

Neurometrix Inc. NURO shares flew higher Tuesday and Wednesday on continued momentum after the company announced its Quell device received Breakthrough Designation from the FDA for treating the symptoms of fibromyalgia in adults. The stock was trending throughout the day on social media sites such as StockTwits.

NeuroMetrix was up 145.62% at $24.66 at last check.

NeuroMetrix Hourly Chart Analysis

• Shares saw a huge move the last two days and look to be cooling off; the stock may trade in a sideways channel until more momentum comes into the stock.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock is bullish.
• Each of these moving averages may hold as an area of support in the future.

Key NeuroMetrix Levels To Watch

• The stock flew higher reaching the $35 mark before it cooled off, this level may hold as resistance again in the future.
• The stock may find support near the gap on the chart. The gap on the chart begins at the $15 level, this area may hold as a support level in the future.
• The stock likely will see a period where it cools off for a time after ripping so high. The stock saw over 100% gain in a day, so traders should take caution trading the stock.

What’s Next For NeuroMetrix?

Bulls would like to see the stock continue to break out until the stock runs out of gas. Then bulls would like to see the stock consolidate for a time while holding the gains it was able to make the past few days. Eventually bulls want to see the stock cross above resistance and move higher once again.

Bearish traders would like to see the stock fall and break below the potential support from the gap. Following bears would like to see the stock break below the moving averages. If the stock could break below the moving averages, the trend may see a change and sentiment may turn bearish.