LOCL Stock Price Surge by 163%; Will the Bull Run Continue?

• The LOCL stock price is currently trading at $3.20.
• The company stock price has gained 163% from its recent swing low.

Local Bounti Corporation (NYSE: LOCAL) is a controlled environment agriculture (CEA) company. The firm specializes in organic farming and focuses on delivering natural and fresh produce to its customers. 

Local Bounti Corp. (LOCL) Stock Analysis

The wider outlook of the LOCL daily chart shows that its price is currently trading inside the falling channel. The LOCL stock price has gained 163% from its recent low support by high buying volume. It denotes the big investors have bought the company shares at lower prices and expect big gains in the upcoming months.

The company stock price is currently retesting its previous swing high of $3.26 and has formed a strong bullish candle just below it.  The LOCL stock closed its last intraday session at $3.20 with a surge of 22.14% and traded with a volume of 71.211K. It is a small-cap organization with a market capitalization of 26.56 Million USD.

Technical Indicators on the LOCL Stock Price Movement

The LOCL stock price has shown signs of improvement lately. It has reclaimed the 50-day EMA and rose upwards to retest the 100-day EMA. It could indicate the buyers’ comeback in the market by reclaiming the 50-day. If they manage to reclaim the 100-day EMA, they can take full control of the price.

The relative strength index is at 75.65, which shows the stock price has entered the overbought territory. It denotes the price is currently trading above its intrinsic value. It may lead to consolidation in a range of $2.39 to $3.26 until the RSI cools off. According to RSI, it has entered the overbought territory. Thus, the price may consolidate between 50-day and 100-day EMA lines or trade in a range of $2.39 to $3.26.

What’s Next For LOCL Stock Price?

The LOCL stock is showing the participation of bulls in the current scenario as they reclaimed the 50-day EMA with a strong buying volume. It gave price strength to hold the upper levels. However, the RSI line entered the overbought territory which is a factor of concern. The stock price is also trading below the $3.26 resistance zone and the 100-day EMA line. It increases the chance for the price to face rejection and the stock may consolidate in a range of $2.39 to $3.26.

The buyers need to defend the $2.39 level and 50-day EMA line to keep its bullish takeover alive. After which the breakout of the $3.26 resistance zone will trigger the next wave of bull run and can reach its next resistance at $5.10. If it also breaks above this level, it may rise to the next resistance at $7.59. On the lower side, the breakdown of the $2.39 level may cause a panic-selling situation. It can make the price fall to its next support at $0.1502 or the lower trendline of the falling channel.

Conclusion

LOCL stock’s price prediction is indecisive at the moment. The bulls are trying to take control of the price. The reclaiming of the 100-day EMA and $3.26% will only continue the further rise in price. However, the breakdown of given levels and the EMA line can make the price continue its downtrend

Technical Levels

• Resistance Levels: $3.26, $5.10, and $7.59
• Support Levels: $2.39 and $0.1502

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.