Recent Laser IPO Nearly Triples After Timed Announcements: Here's The Bull And Bear Case

Laser Photonics Corporation LASE gapped up for the second day in a row Friday before falling to fill most of the second empty trading range. The stock also gapped up to open the Oct. 11 session.

The higher open on Oct. 11 came after Laser Photonics announced it received an order from the U.S. Navy for its LPC-1000CTH CleanTech Laser Blasting System. On Thursday, news that Coca Cola Co KO has started to use Laser Photonics’ CleanTech Handheld Laser Blasting system in the beverage giant's manufacturing facilities further boosted the stock.

Laser Photonics went public on Sept. 30 at an opening price of $5.05, and after two weeks of trading below the IPO price, the stock reached back up above the level on Friday.

With little trading history on larger time frames, traders may choose to use the 4-hour chart, or even the hourly or 15-minute chart, for guidance on where Laser Photonics could be headed.

On the 4-hour chart, a retracement looks like to come later on Friday or on Monday, because the stock is flashing signals the temporary top has likely occurred.

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The Laser Photonics 4-Hour Chart: On Friday, Laser Photonics was looking to print a hanging-man candlestick on the 4-hour chart, which could indicate a retracement is on the horizon. The stock’s relative strength index is also measuring in at oversold territory on the time frame, which can be a sell signal for technical traders.

• The gaps left below are also likely to give bullish traders pause, because gaps on charts fill about 90% of the time. Gaps exist on Laser Photonics chart between $1.97 and $2.40 and between $2.94 and $3.85, which are likely to fill in the future.
• Laser Photonics is trading in an uptrend, with the most recent higher low formed on Oct. 12 at $2.40 and the most recent confirmed higher high printed at the $3.30 mark the day prior. When Laser Photonics falls to print its next higher low, traders can watch for a possible bullish reversal candlestick to form near the lower range of the closest gap below.
• The only resistance Laser Photonics has above is at the all-time high of $5.49 and there is some mild support below at $3.15 and $2.61.

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