What's Up With Cassava Sciences Flying Today?

Cassava Sciences Inc SAVA shares are trading up Tuesday as traders were able to push the stock higher. The stock has been trending on social media sites such as StockTwits throughout the day.

Cassava Sciences is trading up 25.94% at $58.07 Tuesday at market close.

Cassava Sciences Daily Chart Analysis

• The stock took off Tuesday afternoon pushing up and getting rejected at a previous resistance level in what technical traders call a sideways channel.
• The stock was rejected at the $70 resistance level. If it is able to break above this resistance level, the next place it may find resistance is near the $125 level. Support may be found near the $40 level.
• The stock crossed above both the 50-day moving average (green) and the 200-day moving average (blue) Tuesday, indicating the sentiment in the stock rapidly turned bullish
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) shot higher Tuesday and now sits at 62. This shows the buying pressure in the stock pushed much higher and now outweighs the selling pressure by a decent margin.

What’s Next For Cassava Sciences?

Bullish traders are looking to see the stock be able to hold some of its gains from today. Bulls are then looking to see the stock break over the resistance level and hold above it. A period of consolidation above resistance is a signal the stock may be ready to continue higher.

Bears are looking to see the stock start fading in the next few days and head back toward the $40 support level. Bears are then looking to see the stock fall below this support level and be unable to cross back above it. This could hint the stock is ready to continue to fall. 

Image by Gerd Altmann from Pixabay