Galmed Pharmaceutical (GLMD)
Biotechnology – Israel
The stock saw massive volatility today without any real visible news. Perhaps the potential catalyst was that the company regained compliance with the Nasdaq Stock Market and said it would continue to list and trade its stock on the exchange. Either way, it saw a lot of squeezing price action today.
A stock doesn’t need news to squeeze. It needs short positions, buying momentum, and tight liquidity (or stubbornness).
Initially the stock saw some volume and buying on the open which lead to the break out over 6 & VWAP. It ended up not breakdown under VWAP for the rest of the day.
It was really then the break and hold over the premarket 7.10 level that sent it upwards. It had a flush break downs throughout the day, as expected for such a low float, but it continued to hold levels, hold VWAP, and break out to new HOD.
Primary Take-aways
- Micro floats can lead to big volatility (up or down)
- Micro floats can flush up or down a few points within seconds
- Stocks don’t always need big visible news to squeeze
- Holding VWAP can be a sign of buying momentum
- Reclaim key levels such as VWAP can be a sign of buying momentum
- Breaking out over premarket levels can be a sign of buying momentum
- Premarket planning, such as our Market Analysis this morning, is key to successful trading vs FOMO & being too reactive