2 Meme Stocks Stress Test for Bigger Move – Express (EXPR)
Express Inc (NYSE: EXPR) and Tyme Technologies Inc (NASDAQ: TYME) skyrocketed in January and February after gaining the attention of the WallStreetBets community.
Now known as meme stocks, with GameStop (NYSE: GME) and AMC Entertainment Holdings Inc (NYSE: AMC) and dozens of others, Express and Tyme entered long periods of consolidation after climbing 1078% and 202% respectively. A number of memes stocks appear to have found a new bottom recently and on Monday, Express and Tyme moved north.
The express graphic: On January 27, Express hit a high of $ 13.97 – the highest the stock had traded since November 2016. After hitting its new high, Express sold off and fell nearly 85% and has since traded between $ 2.17 and $ 6.34. Since March 9, Express has held support at the $ 2.85 level, which appears to be its new low, and on Monday, a rise in bullish volume helped the stock reach its next resistance level at 3.82 $.
Last Thursday, Express resumed support for eight-day and 21-day exponential moving averages (EMA) and Monday’s bullish move caused the eight-day EMA to rise to the 21-day EMA. The bullish price action on Tuesday will push the eight-day EMA above the 21-day EMA, which would be bullish for Express going forward.
Express is trading above the 200-day Simple Moving Average (SMA) indicating that the general sentiment for its stock is bullish.
The bulls want to see Express jump on resistance at $ 3.82 for a return to the $ 5.00 area. If the stock was able to regain $ 5 as support, it could climb back to $ 6.34.
The Bears want to see Express continue to reject its overhead resistance and lose support from the eight-day and 21-day EMAs. If Express is pushed back towards the $ 2.85 level again, its support may weaken. If Express loses this level as support, it could drop back down to $ 2.17.
See Also: Is AMC Entertainment Stock About To Go Down?
The Tyme graph: Like Express, a rise in volume on Monday helped Tyme’s stock move higher towards its next resistance level at $ 1.33. Tyme was briefly able to trade above his resistance level, but was unable to close the day above as the stock rejected, and wickedly, the 200-day SMA. It also indicates that general sentiment in Tyme is bearish.
On Monday, Tyme was able to recover the eight-day EMA, and the eight-day and 21-day EMAs started to increase slightly, indicating that higher prices may arise in the near future.
The bulls want to see bullish momentum for Tyme on the resistance at $ 1.33 and for the stock to regain support at the 200-SMA and 21-day EMA. If the stock is able to regain the $ 1.30 level as support, it could trade close to $ 1.61.
The bears want to see Tyme’s stock continue to reject the 200-day SMA and its overhead resistance. If Tyme continues to reject resistances he could fall back to the $ 1.11 level and if he is unable to hold that level as support he could drop as low as the 91 cent mark before finding another bottom.
EXPR and TYME price action: Express was up 3.7% to $ 3.80 at time of publication, while Tyme was up 1.8% to $ 1.36.