Aeterna Zentaris Inc. (NASDAQ:AEZS) shares surged 19.66% during trading on Thursday, going up from its prior closing price of $2.34 to $2.80 , and has now gained 3 consecutive sessions. Many in the market will be closely watching whether this winning streak is sustainable or take a temporary pause for the next couple of trading sessions. The stock price went upward in 6 of the last 10 days and has generated 180% during the last two weeks. Trading activity decreased by -14.18 million shares, and in total, 47.09 M shares exchanged hands for about $131.84 million. It should be noted that increasing price and decreasing volume show lack of interest and this is a warning that something has fundamentally changed.
Inside AEZS’s Recent Trend
Aeterna Zentaris Inc. (AEZS) has broken the very wide and falling short-term trend up. Initially a lower tendency for declines in the price is indicated and this might very well be an early sign that a trend shift is more likely to happen in the next couple of days. In case of reaction, the stock will see strong support at $2.70, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $5.12 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.
Aeterna Zentaris Inc. Technical Signals
AEZS has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $1.48 and $1.10. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Wednesday June 21, 2017, which calls for additional surge until the stock forms a new pivot point high. There was a decrease in volume but the price rose. This is usually not interpreted as a good sign as traders widely believe falling volume should see declining stock. Investors should be watching the price action like a hawk in the coming sessions.
Aeterna Zentaris Inc. (NASDAQ:AEZS) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $2.34. In case of gains, the next resistance from accumulated volume will be at $3.35, $3.05 and $3.10.
It seems to be cursed by the accumulated volume as it meets no support below current level and favorable trading conditions around $2.34 will drag the stock lower.
Aeterna Zentaris Inc. (AEZS) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.74 between high and low, or 29.02%. The average volatility for the past week stood at 27.92%.
The stock is extremely overbought on RSI14 (95). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.