You Ask, We Analyze: What's Happening With Alpine 4 Stock?

On Sunday evening, Benzinga asked its followers on Twitter Inc (NYSE: TWTR) which two companies they are investing in for the month of October and why. From the replies, Benzinga selected one ticker for technical analysis.

@ConfusedWorker1, @Exuptoy, @sendJamesatweet, @fustero_jaso, @Rjoshua2, @ChocolatePepsi1, @TheStockMasterr, @RichD76656085, @jonathan5tymes, @shahzaibbabyy, @Inu5cmNBwE4mnHh, @ChrisRo43094421, @curtisjordann, @GainzRichy and @Weilcep are investing in Alpine 4 Holdings Inc (OTC: ALPP) this month.

Alpine 4 Technologies is a publicly-traded holding company that has business-related endeavors in automotive technologies, electronics manufacturing, fabrication technologies and clean energy solutions.

@ChocolatePepsi1 wrote: “The bleeding price the last 8 months is a result of impatient sellers as ALPP try to up list, but it likely surpasses it’s ATH within a few months on NASDAQ. Great fundamentals.”

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The Alpine 4 Chart: Alpine 4 made a massive move north on Friday, soaring 42.95% on huge volume. There were 2.38 million shares that exchanged hands during the trading session compared to the 10-day average of 644,930. Above-average volume indicates a high level of interest in a security.

The huge move to the upside caused Alpine 4 to print a massive bullish Marubozu candlestick, which indicates higher prices may come in the future. In the pre-market session on Monday, Alpine 4 was trading up another 12.45% higher.

Friday’s price action caused Alpine 4’s relative strength index (RSI) to reach near the 80% level. When a stock’s RSI reaches or exceeds 70%, it puts the stock square into overbought territory, which is a sell signal for technical traders. Although an RSI can remain extended for a long period of time, it always corrects eventually and bullish traders will want to see some consolidation in the future.

Alpine 4 is trading above the eight-day and 21-day exponential moving averages (EMAs) and if the stock continues to trade higher over the coming days the eight-day EMA will cross above the 21-day, which will be bullish. On Friday, Alpine 4 was able to regain support at the 200-day simple moving average, which indicates overall sentiment in the stock is bullish.

• Bulls want to see sustained big bullish volume although consolidation will be needed at some point. There is resistance able at $3.20, $3.38, $3.55 and $3.85.
• Bears will want to watch for a volume climax to indicate the bulls have run out of steam and have begun to take their profits out. There is support at $2.95, $2.52 and $2.38.

Photo by Joshua Earle on Unsplash