Rocket Fuel Rally Fizzles After Coming Off Halt

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Rocket Fuel Inc FUEL shares were trading lower by $0.11 at $6.02 and has just come off being halted due to a circuit breaker being triggered. The catalyst for the explosive rally up to $6.62 is that the company has rejected an unsolicited bid from Gravity 4. The Board has determined the bid was not credible.

Off the open, the issue found support just above Monday's low ($5.89), only reaching $5.91 before rebounding to the $6 level. Upon the news of the rejected bid, the issue spiked to $6.62 before being halted. That marks the highest level for the issue since it peaked on August 19 at $6.80.

Since coming off the halt, the issue has given back all of its gains and is now in the red and is attempting to find support at the $6 level.