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Why Inovio Stock Looks Ready To Break Out, Make Bullish Reversal

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Why Inovio Stock Looks Ready To Break Out, Make Bullish Reversal

Inovio Pharmaceuticals Inc. (NASDAQ: INO) shares were trading higher Wednesday as retail traders continue to push high short interest stocks higher.

The stock saw above average volume and was trending on social media sites throughout the day. The stock has a public float of 204 million shares and a short percentage of 27.43%.

The stock is also likely moving as the company expanded its partnership with Advaccine to conduct a global Phase 3 efficacy trial of a COVID-19 DNA vaccine candidate.

Inovio Pharmaceuticals stock was up 16.76% at $10.03 at last check. inodaily6-9-21_0.png

Inovio Pharmaceuticals Daily Chart Analysis

  • The stock pulled back in recent months, forming what technical traders call a falling wedge pattern.
  • The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
  • The 50-day moving average may hold as an area of support, while the stock may find resistance near the 200-day moving average.

Key Inovio Pharmaceuticals Levels To Watch

  • Inovio Pharmaceuticals has been forming the falling wedge pattern since August 2020 and is now nearing the point in the pattern.
  • This bullish reversal pattern forms as the stock shows a steeper downward trend in the highs than it does with the lows forming a wedge on the chart.
  • A break out of the pattern resistance may follow with a large upward move, while a break through the pattern support may bring about a strong downward push.

What’s Next For Inovio Pharmaceuticals?

Bullish technical traders would like to see the stock break out of the pattern resistance and change trends. 

If the pattern broke out and saw a large upward move, bulls would want to see a period of consolidation before the stock continues to move higher.

Bearish technical traders would like to see the stock fall through the bottom of the wedge pattern, breaking support. If this were to occur, the stock may see a further downward push. Following a downward push, bears would like to see consolidation below the pattern for a possible further move.

 

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