Arch Therapeutics Inc (NASDAQ: ARTH) shares rose on Monday February 13 on lower trade volume than normal after more analysts initiated coverage on the stock.
Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.
The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.
Analysts at Rodman & Renshaw initiated coverage on Arch Therapeutics Inc (NASDAQ: ARTH) stock, starting the company at Buy. The company currently has a rating of Buy on the shares. The one-year price target of $1.60 is higher than the opening price of $0.67, causing a fair amount of other analysts to report on the stock in recent days. Looking back over the last 52 weeks, Arch Therapeutics Inc stock has a high of $0.94. Price changes targets are not unheard of as analysts and brokerage firms will issue periodic updates after beginning or initiating coverage.
Shares of Arch Therapeutics Inc (NASDAQ: ARTH) opened at $0.67 yesterday and traded in a range between, $0.65 and $0.69, and last traded at $0.67, which represents a jump of $0.02 compared to the previous closing price.
Arch Therapeutics Inc (NASDAQ: ARTH) currently has a market cap of 91.19M.
Arch Therapeutics Inc (NASDAQ: ARTH) Average Daily Trading Volume
253,949 shares traded hands yesterday, 77 percent below the average, out of a total float 103,158,000. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for short periods will not mean much will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.
Arch Therapeutics Inc (NASDAQ: ARTH) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Arch Therapeutics Inc (NASDAQ: ARTH) now has a 50-day MA of $0.64 and 200-day MA of $0.62. It has traded in a 52-week range between $0.17 – 0.94 and today’s last price is 29.10%% lower than the 52 week high of $0.94.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.