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Cogentix Medical, Inc. (CGNT) Stock Nears $2.25: Still a Buy?

Cogentix Medical, Inc. (NASDAQ:CGNT) gained 11.39% during the yesterday’s session, going up from its prior closing price of $2.02 to $2.25 The price has been moving in both directions for this period, and there has been a 25% gain over 10-day period. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 226 906 more shares exchanged hands compared with prior day. In total, 250 234 shares was the trading volume and the dollar amount of trading equals $563 026.

 

Inside CGNT’s Recent Trend

Cogentix Medical, Inc. (CGNT) has broken the wide and weak rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $1.90, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $2.14 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.

Cogentix Medical, Inc. Technical Signals



CGNT has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $1.98 and $1.77. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Monday July 24, 2017, which calls for additional surge until the stock forms a new pivot point high. Cogentix Medical has rising volume and follows the last lift in the price. This is considered to be a technical positive sign as volume should follow the price-formation. Higher liquidity also reduces the general risk.

Cogentix Medical, Inc. (NASDAQ:CGNT) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $1.79 and $1.76. It seems to be blessed by the accumulated volume as it meets no resistance above current level and favorable trading conditions will help the stock to show strong performance in the coming days.




It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Cogentix Medical approaches the first support point just current price at $1.79. In case of a break, the next support we will see from accumulated volume is going to be at $1.76 and $1.73.

Cogentix Medical, Inc. (CGNT) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.30 between high and low, or 14.29%. The average volatility for the past week stood at 7.83%.

The stock is extremely overbought on RSI14 (76). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

 

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