Communications Systems Shares Rally On Merger Deal: Short-Term Technical Levels To Watch

Shares of Communications Systems, Inc. JCS were trading higher on increased volume Tuesday after the company announced a merger deal with Pineapple Energy LLC.

Communications Systems said it's "a leader in providing physical connectivity infrastructure and services for global deployments of broadband networks."

Here are some short-term technical levels to watch in the stock, which was ripping 91.12% higher to $10.22 at last check. 

JCS Technical Levels to Watch: The 1-minute chart below indicates there is what technical traders may call speculative short-term support at the $8 price level.

Technical traders may find a further speculative short-term support if the $8 level does not hold near the $7 level.

What technical traders call a speculative short term resistance may be found around the level of $11. If this speculative resistance level is broken, traders will find the next short-term speculative resistance around the premarket high at the price of $14.69.

A bullish technical trader ideally may like to see a move to the upside through the speculative resistance levels with a consolidation period above these levels before the stock would be able to see a further move to the upside.

A bearish technical trader may like to see a breakthough of technical support to see a further move to the downside.