On Tuesday evening, Benzinga asked its followers on Twitter what they’re trading. Benzinga selected one ticker from the replies for technical analysis.
@VLCapital and @FoolHartly are trading Beyond Air, Inc XAIR, which was spiking up over 2% higher on Wednesday and defying the general market, which saw the S&P 500 negative by about 1.5%.
The counter-movement is likely due to Beyond Air's recent announcement that its affiliate, Beyond Cancer, has entered into a sponsored research agreement with Stanford School of Medicine.
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Beyond Air, which develops ultra-high concentration nitric oxide (UNO) as an immunotherapeutic for tumors, also tapped two Stanford professors to provide input on the clinical trial.
The news helped Beyond Air print a higher low to confirm a new uptrend is intact and if the stock can gain more bullish momentum over the coming days, Beyond Air could break up from a long-term descending trendline.
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The Beyond Air Chart: Beyond Air has been trading under a descending trendline since Nov. 29, 2021, which has been pushing the stock lower. Almost a year later, on Nov. 9, 2022, the stock started to push higher above an ascending trendline, which has settled Beyond Air into a triangle formation on the daily chart.
- Beyond Air is set to meet the apex of the triangle on Feb. 21 and traders and investors can watch for the stock to break up or down from the pattern before that date. The Garden City, New York-based company is set to print its third-quarter earnings on Feb. 10, which may help the stock break from the triangle if it hasn’t before then.
- On Wednesday, Beyond Air was working to print a bullish engulfing candlestick, which suggests the stock may trade higher on Thursday. If that happens, Beyond Air will regain the eight-day exponential moving average as support, which would give bullish traders more confidence.
- Bearish traders will want to wait and see if Beyond Air forms a bearish reversal candlestick, such as a doji or hanging man candlestick, if the stock rises up to meet the upper descending trendline, which is likely to act as resistance.
- If Beyond Air is able to break up bullishly from the triangle formation, bullish traders will want to see the stock regain the 200-day simple moving average as support, while bearish traders will want to see the stock reject that level.
- Beyond Air has resistance above at $7.20 and $7.75 and support below at $6.40 and $5.69.
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