Sigma Labs Stock Rallies On Lockheed Martin Contract: Technical Levels To Watch
Sigma Labs Inc. (NASDAQ:SGLB) shares caught fire in Monday's session following the company's announcement of a contract award from Lockheed Martin Corporation (NYSE:LMT)'s Space Additive Design & Manufacturing Center.
The stock was trading 150.9% higher at $8.38 at last check.
Sigma Labs Technical Levels To Watch: The 1-minute chart above shows the stock has been in an uptrend all day.
This occurs when there is a positive slope of the line connecting all of the lows on the chart. A potential resistance level can be found near the $8.75 mark, as this was the peak on many 1-minute candles.
Bulls would like to see the stock maintain higher lows and stay above the VWAP (pink) and 200-day moving average (blue), maintaining a bullish outlook on the stock for the day.
A cross above the resistance line could bring about the next move up. If this were to happen, look for the price to retest near this level for a bounce.
Bears would like to see the stock stop forming higher lows on the day. A cross below both the VWAP and 200-day moving average would also be ideal. A cross below these levels may bring about a quick strong bearish move to the stock.
Long-term technical levels are a guessing game for stocks that more than double on the day. A long-term trader bullish trader may like to enter on a day where the stock makes a correction. Buying stocks on a day when they run 100% comes with many risks for a technical trader.
Sigma labs is trading with a market cap of $25 million and a public float of 5.6 million shares.
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