POET Technologies Inc (NASDAQ:POET) shares are retreating on Thursday. This move follows a massive 75% rally earlier this week. The Nasdaq is down 0.33% while the S&P 500 has shed 0.08%.
Natural Pullback After Massive Rally
Traders are likely taking profits on Thursday. The stock surged after CFO Thomas Mika dismissed a Wolfpack Research report.
Mika called the bearish allegations a “big nothing burger.” He also confirmed a business relationship with Marvell Technology Inc (NASDAQ:MRVL).
Short Sellers Increase Pressure
Bearish bets against the optical engine creator are rising. Short interest climbed from 11.71 million to 13.14 million shares recently.
This represents 8.63% of the company’s public float.
Technical Analysis
POET is trading near the upper end of its 52-week range of $3.67 to $12.95. The stock is trading 77.3% above its 20-day simple moving average (SMA) and 86.5% above its 100-day SMA.
The relative strength index (RSI), a momentum gauge, is 83.44, which is firmly overbought and signals unusually strong upside pressure.
Over the last 12 months, the stock is up 209.31%, reinforcing that this has been a sustained uptrend rather than a one-week pop.
The golden cross in April (50-day SMA moving above the 200-day SMA) aligns with that longer-term bullish structure staying in place.
- Key Resistance: $13
- Key Support: $7.50
POET Price Action: POET Technologies shares were down 8.30% at $11.75 at the time of publication on Thursday, according to Benzinga Pro data.
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