Capricor Therapeutics, Inc. (NASDAQ:CAPR) shares surged 9.48% during trading on Thursday, going up from its prior closing price of $1.16 to $1.27. The stock price went upward in 5 of the last 10 days and has generated 67.11% during the last two weeks. Trading activity decreased by -3.34 million shares, and in total, 3.64 M shares exchanged hands for about $4.63 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 CAPR’s Recent Trend
Capricor Therapeutics, Inc. (CAPR) lies the upper part of a very wide and falling trend in the short term, and this will normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break down through the support point at $1.28 will initially suggest a lower tendency for declines in the price and this might very well be an early sign that a trend shift is coming. Short-term traders are anticipated to see a retreat of -66.42% over the course of a quarter and, with 90% chance the price will be floating in the range of $-0.30 and $0.43 in this timeframe.
Capricor Therapeutics, Inc. Technical Signals
CAPR 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 $0.94 and $0.79. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Wednesday July 19, 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.
Capricor Therapeutics, Inc. (NASDAQ:CAPR) 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 $1.19 and $1.16. In case of gains, the next resistance from accumulated volume will be at $1.36.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Capricor Therapeutics approaches the first support point just current price at $1.19. In case of a break, the next support we will see from accumulated volume is going to be at $1.16 and $1.00.
Capricor Therapeutics, Inc. (CAPR) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.22 between high and low, or 19.47%. The average volatility for the past week stood at 28.17%.