Takung Art Flies High Wednesday: What's Going On?

Takung Art Co Ltd (NYSE: TKAT) shares shot higher Wednesday, although there looks to be no company-specific news to explain the jump in price. The stock was trending on social media Wednesday, likely pushed by retail traders as the stock has only an 8.74 million float.

Takung Art was up 33.33% at $5.08 Wednesday afternoon at publication.

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Takung Art Daily Chart Analysis

• Shares have broken above resistance in what traders call a falling wedge pattern. The stock may be beginning to see a trend change if the stock can start to form higher lows.
• The stock crossed above the 50-day moving average (green) Wednesday, but is trading below the 200-day moving average (blue). This shows the stock is trading in a period of consolidation. The 50-day moving average may hold as support, while the 200-day moving average may act as resistance.
• The Relative Strength Index (RSI) has been trending higher and now sits at 55. This shows that more buyers have entered into the stock and now there is more buying pressure than there is selling pressure.

What’s Next For Takung Art?

The stock broke out of the pattern and has been trending higher since. If the stock continues to form higher lows it may show the stock is starting to form a bullish trend and could continue higher. Bulls are looking to see the stock continue rising and be able to cross the 200-day moving average. Bears are looking to see the stock fall back below the 50-day moving average and below the support in the wedge pattern.

Photo by Darius K on Unsplash