Hyperfine expects Q3 revenue of $6M; shares jump 9%
This is positive news as Hyperfine shares surged 9% following the announcement of its expected third-quarter revenue of $6 million.
Since the current price of $0.85 is situated in a short-term volatility zone before reaching the resistance level of $0.94, entry can be considered in the price range between the support and resistance levels, alongside the positive catalyst of expected Q3 revenue.
I will take profit if the price reaches the indicated 20-day high resistance level of $0.94, and I will cut losses if the 20-day low support level of $0.75 is breached.
RSI (14) is at 64.3, moving averages are not in a bullish alignment, trading volume is 0.87x the 20-day average, and the volatility over the past 7 days stands at +1.6%.
Along with the positive catalyst of expected Q3 revenue of $6 million, it was anticipated to go through a short-term volatility phase within the range of the 20-day low support line ($0.75) and high resistance line ($0.94). However, the actual result recorded a 10.7% surge, exceeding the predicted return of 4.5%, receiving an OVERHIT rating. It was confirmed that we failed to fully anticipate the momentum of the news strongly breaking through the upper resistance line, even amidst an unaligned arrangement environment with an RSI (14) of 64.3 and a trading volume level of 0.87x.
When the upward trend in themed news is accompanied by ad-hoc performance disclosures, I should incorporate a flexible profit-taking criterion into my next trade that keeps the possibility of an upward breakout open, rather than being strictly confined to predetermined resistance price levels.