You Ask, We Analyze: Will Vinco Ventures Confirm A Trend Change As Buyers, Sellers Level Off?

On Sunday evening, Benzinga asked its followers on Twitter what they’re buying at the open on Monday. From the replies, Benzinga selected one ticker for technical analysis.

Of the 115 followers who responded to Benzinga on Twitter as of 8:00 a.m. Monday morning, 42 said they're buying Vinco Ventures, Inc. BBIG.

Some of the traders interested in Vinco Ventures are watching for a short squeeze to occur, which has happened on at least two previous occasions. Short interest on the stock has been increasing and combined with other statistics available, Vinco Ventures has the characteristics of a short squeeze candidate.

Of the stock's relatively small 123.48 million share float, 33.51 million shares, meaning 25.81%, are held short. The number has increased from 30.38 million shares held short in December. The stock has relatively high ownership levels as well, with 9.92% of available shares held by insiders and 19.05% held by institutions.

See Also: 18 Stocks Moving in Monday’s Pre-Market Session

The Vinco Ventures Chart: Between Jan. 12 and Jan. 18, Vinco Ventures soared 123% to reach a high of $5.49. The stock then fell over 50% lower in the four trading days that followed to land at a low of $2.53 on Jan. 24.

When Vinco Ventures hit the $2.50 level, it ran into a group of buyers, which caused the stock to wick up from the level and print a dragonfly doji candlestick on the daily chart. Since then, Vinco Ventures may have reversed course into an uptrend after printing a possible higher low on Friday, but more candles on the daily chart will need to print in order to confirm that.

Friday’s lower-than-average trading volume indicates the stock has entered into a period of consolidation. On that day, only 22.06 million shares exchanged hands, compared to the 10-day average of 104.57 million shares. Lower-than-average trading volume indicates a current lack of interest as both buyers and sellers exit the stock.

Vinco Ventures has two gaps above on its chart which are likely to fill in the future because gaps on charts fill about 90% of the time. The first gap is between $5.56 and $5.86 and the second gap falls between the $9.41 and $9.51 range.

The stock is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day and 21-day EMAs trending in line.

Bullish traders will want to see Vinco Ventures pop up above the EMAs to avoid the eight-day cross below the 21-day, which would be bearish.

Vinco Ventures has resistance above at $3.06 and $3.56 and support below at $2.63 and $2.16.