Shares of Summit Therapeutics Inc. SMMT stock had a big move higher Monday. After reporting earnings and giving a clinical trial update, the stock gained $1.44 a share, a move of almost 27%. But the sellers may have put a top on it, at least for now.
Resistance is a large group of sellers who are all offering their shares at the same price. At resistance levels, there is more supply than demand so rallies can end when they reach them.
In March, Summit shares also made a big move higher, but the move ended at $6.90 because there was resistance. On Monday, shares ran into resistance around the same level. It closed at $6.85.
Of course, there’s a chance the stock blows through the resistance and makes a big move higher, but there’s also a chance the sellers put a top on the stock again.
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