Co-Diagnostics Stock Surges: Can It Continue?

Co-Diagnostics Inc. CODX shares rallied higher Thursday after reports circulated that $1.6 billion could be directed toward COVID-19 testing in high-risk areas by the Biden administration. 

Co-Diagnostics was up 21.15% at $10.54 at the close Thursday. 

See Also: Why Co-Diagnostics Shares Are Skyrocketing Today

Co-Diagnostics Daily Chart Analysis

• Shares have been trading in what technical traders call a falling wedge pattern. The stock saw a jump in price and neared pattern resistance after the report came out.
• The stock is trading above the 50-day moving average (green), but below the 200-day moving average, indicating the stock is likely in a period of consolidation.
• The stock may find support near the 50-day moving average, while the 200-day moving average may hold as support.

Key Co-Diagnostics Levels To Watch

• The stock saw a move up Thursday pushing the stock toward the top of the pattern; the stock could not break above the pattern resistance.
• The stock may cool off and trade within the pennant for a bit longer before breaking above resistance or below support.
• The Relative Strength Index (RSI) shot up to 68 Thursday, pushing it toward the oversold area. If the stock can cross into the overbought range as it sees upward movement, the stock may break out of the pattern.

What’s Next For Co-Diagnostics?

Bullish traders would like to see the stock break out of the wedge pattern resistance and see a bullish move higher. Bulls would then like to see a period of consolidation where the stock can hold its gains and possibly be ready for its next leg up.

Bearish traders would like to see the stock fall further and break below pattern support. This could cause the stock to see a further downward push and a possible change of trend. Bears would like to see the RSI drop lower and fall below the 50 line.