- Imperial Petroleum Stock Price up by 40% in the current month.
- IMPP Stock Price formed a double bottom pattern.
- Imperial Petroleum Stock (NASDAQ: IMPP) breakout of the 50 day EMA hurdle.
Imperial Petroleum Stock price up 40% in the current month and formed a double bottom pattern. It took support near to the 52 week low and short covering rally triggers from the lower levels.
IMPP Stock price break out of the 50 day EMA hurdle shows the short term trend is reversing in the upward direction. However, the price is near to the neckline resistance of the double bottom which might act as an immediate hurdle for the bulls.
Imperial Petroleum Stock Price closed the previous session at $3.70 with an intraday decline of -3.14%. The market capitalization stands at $60.16 Million. At the mid of February, NASDAQ: IMPP released the quarterly earnings which positively impacted the stock.
IMPP stock surged 36% approx in a single day and hit a high of $5.71. However, the prices failed to give the follow up momentum and got a sharp rejection. It ended up as a trap for the bulls and prices continued to decline by forming lower lows. The downfall halted near to the $2.00 and prices showed minor recovery.
The recovery lacked the positive momentum and prices began to consolidate near to the 50 day EMA. Sellers drag the prices down to retest the yearly lows. Surprisingly, the stock witnessed a massive spike in the buying volume and buyers succeeded to defend the yearly lows.
Will the rally continue in Imperial Petroleum Stock?
Imperial Petroleum Stock had not performed well in the past one year and continuously declined by forming lower lows swings. It has not generated any returns and disappointed the long term investors.
Recently, after a long time some positive upward momentum is visible. If the buyers succeed to break out of the $4.00 hurdle, more upside will open and prices might test $5.00.
However, if the price faces rejection, it is likely to remain in the consolidation range between $2.00 to $4.00. On the other hand, if the prices drop below the 50 day EMA then it may be interpreted as a bull trap.
The technical analysis suggests, IMPP Stock price is in bear grip and recent up-move has low probability of sustaining the higher levels.
IMPP Stock price rallied due to short covering
IMPP Stock price formed a bullish reversal pattern on the weekly time frame. However, the confirmation of the trend reversal is still awaited. The recent rally seems to be derived by short sellers due to covering of previous shorts. Therefore, the rally might not sustain on higher levels until genuine buyers invest in it.
The technical indicators like MACD had generated a positive crossover and histogram bar is on rise. It indicates upward momentum might continue for some more time. The RSI at 62 sloping sideways denotes prices are facing hurdles on higher levels.
Conclusion
Imperial Petroleum Stock up 40% on a monthly basis and formed a double bottom pattern. IMPP Stock shows signs of the bullish trend reversal but the confirmation is still awaited.
The technical analysis suggests the recent up-move is due to short covering. Therefore, the probability of sustaining the higher levels remains low.
Technical levels
Resistance levels: $4.000 and $5.72
Support levels: $2.00 and $1.50
Disclaimer
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