Why Did Xtant Medical Holdings Spike Over 100% Today?

Xtant Medical Holdings XTNT shares spiked over 100 percent Friday. Xtant Medical holdings is a company that per the company’s website “is focused on the design, development, and commercialization of a comprehensive portfolio of orthobiologics.” Currently the company has released no news that would have caused the price to move so sharply to the upside. However, the company recently closed a $20 million private placement Thursday morning. Orbimed Advisors LLC also reported a 13D filing stating they lowered their stake in the company by 7000 shares, and now maintain 72,803,072 shares.

Technical Levels

Currently the one minute chart is showing that Xtant is forming higher lows. The price has reached $4.25 multiple times today but has not been able to cross above this level and hold the price. This is what technical traders maycall a speculative resistance intraday. The chart is forming what technical traders call an ascending triangle pattern. Bullish technical traders may look for a resistance break for the stock to continue upwards. Bearish technical traders may look for a higher low to stop forming and further rejections from resistance.

The daily chart shown below shows that the spike today is a larger than normal move to the upside. The chart also shows that previous spikes have not been able to hold the gains after spiking, so technical traders should trade with caution.