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Revisit the buy and-hold case for Luna Innovations Incorporated (LUNA)

Luna Innovations Incorporated (NASDAQ:LUNA) gained 17.36% during trading on Thursday, going up from its prior closing price of $1.21 to $1.42. The price has fallen in 6 of the last 10 days, but is still up by 2.9% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 1.41 million more shares exchanged hands compared with prior day. In total, 1.45 M shares exchanged hands for about $2.07 million.

Inside LUNA’s Recent Trend

Luna Innovations Incorporated (LUNA) lies in the middle of a very wide and falling trend in the short term and pointed towards extra losses. Short-term traders are anticipated to see a retreat of -14.41% over the course of a quarter and, with 90% chance the price will be floating in the range of $0.94 and $1.28 in this timeframe.

Luna Innovations Incorporated Technical Signals



LUNA has witnessed its long term and short term MA triggering a buy signal but chances are low for long-term averages to cross above short-term averages which the market considers a major buy signal. Upon corrections, the price will meet support from the averages between $1.25 and $1.38. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Friday August 04, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.

Luna Innovations Incorporated (NASDAQ:LUNA) 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 $1.35 and $1.32. In case of gains, the next resistance from accumulated volume will be at $1.50, $1.51 and $1.57.




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, Luna Innovations Incorporated approaches the first support point just current price at $1.35. In case of a break, the next support we will see from accumulated volume is going to be at $1.32 and $1.16.

Luna Innovations Incorporated (LUNA) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.19 between high and low, or 14.07%. The average volatility for the past week stood at 8.11%.

 

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