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ContextLogic Inc (NASDAQ:WISH) squeezed Tuesday morning, broke Monday’s high and headed toward the $15 mark. The stock has seen enormous interest in Reddit communities and on Twitter due to its high level of institutional ownership and the amount of short interest on the stock.
ContextLogic has a relatively small float of 338.76 million shares and institutions own a bizarre 92.90% of its total available shares while insiders own another 4.89%. That leaves only 2.21% of its shares available for retail traders which is perplexing considering the amount of traders on social media who claim to own it.
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@MrZackMorris, an influential user among the Fintwit community, gave his 485,000 followers a price target of $69 for ContextLogic’s stock on Monday and a massive amount of his followers look to have purchased the stock.
The stock is a good distance from $69, which would be a new all-time high for the stock by a mile, but ContextLogic does look to be headed higher.
$WISH PT $69. No Cap pic.twitter.com/n5rPO2rmkk
— Zack Morris (@MrZackMorris) June 21, 2021
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The ContextLogic Chart: After shooting up and making a new high Tuesday morning, ContextLogic’s stock began to consolidate on lower time frames and fell back below an area of resistance, near the $13.60 level, that had given it difficulty on Monday. The consolidation helped to cool off the relative strength index which surpassed 65% at one point.
ContextLogic has seen massive volume in its stock over the past 11 trading days, quadrupling its average daily volume over that time to about 158 million shares. By 11:50 a.m. on Tuesday, 149 million of ContextLogic's float had already changed hands.
ContextLogic is trading above both the eight-day and 21-day exponential moving averages (EMAs) with the eight-day EMA trending above the 21-day EMA, both of which are bullish indicators. The stock is slightly extended from the EMAs, however, trading about 14% and 24% above them, respectively.
Bulls want to see ContextLogic’s stock pop back up above resistance at $13.62 and for it to close above that level. If the stock can regain the level as support, it has room to move back up toward $15, the high it made on June 9.
Bears want to see ContextLogic continue to reject its upper resistance level and for big bearish volume to come in and drop it down toward $11.99. If the stock was unable to hold that level as support it could fall down toward the $10 level.
WISH Price Action: Shares of ContextLogic were trading around $13.42 at publication time.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.