You Ask, We Analyze: Enveric Biosciences Stock Looks Ready To Skyrocket

On Sunday evening, Benzinga asked its followers on Twitter which stocks they’re buying at the open on Monday. From the replies Benzinga selected one ticker for technical analysis. @blackrocktrades, @306Trader, @lteng92791590 and @heretoclear are all watching Enveric Biosciences, Inc (NASDAQ:ENVB), a cannabinoid-focused pharmaceutical company headquartered in Naples, Florida.

Pharmaceutical stocks, often due to their small floats, can make parabolic moves; on Friday, Enveric rallied 19% higher. The stock has just 16.96 shares available for trading and 31.43% are locked up with insiders and institutions with insiders owning 25.48% and institutions 5.95%.

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The Enveric Chart: Enveric skyrocketed Friday due to extremely high bullish volume entering the stock. A total of 60.17 million shares exchanged hands compared to the average 10-day volume of 12.88 million shares. In the pre-market on Monday Enveric was up over 3% higher on above-average volume as well.

Monday’s move higher began with a gap up open. Enveric now has a small trading range between $2.25 and $2.30 with no recent price history. Gaps on charts fill 90% of the time so it's likely the stock will drop down to fill the gap in the future.

Enveric’s relative strength index reached about 74% on the daily chart. When a stock’s RSI measures in at over 70% it is in overbought territory, which is a sell signal for technical traders.

Enveric will eventually need a period of consolidation to cool its RSI, but that doesn’t mean the stock can’t soar further before resting. Although the RSI will always eventually correct back between the comfortable 30% to 70% level, it can stay extended for a long period of time.

The stock is trading above the eight-day and 21-day exponential moving averages with the eight-day EMA trending above the 21-day, both of which are bullish indicators. Enveric is also trading above the 50-day simple moving average which indicates longer-term sentiment is bullish.

• Bulls want to see sustained big bullish volume drive Enveric’s stock up above resistance at the $2.69 level. If the stock can regain the level as support, it has room to move up toward $3.
• Bears want to see big bearish volume come in and drop Enveric down below support at the $2.37 level and back into the gap. If the stock falls back below $2.25 if could revisit a support zone at $2.11.