Dragon Victory International Ltd (NASDAQ: LYL) is making a run for the top in the market this morning, but with no news or SEC filings, many are wondering what’s going on. Here’s the scoop:
Dragon Victory International Climbs On Trader Excitement
The fact of the matter is that Dragon Victory International hasn’t issued any news or SEC filings for some time now. So, a clear catalyst simply isn’t available. However, a mix of technical factors and speculation seem to be driving the movement in the stock this morning.
Technical Traders Love LYL
Recently, technical day traders have been all over Dragon Victory International, and for good reason. First and foremost, the stock trades with an ultra-tiny public float, currently sitting at around 10 million shares.
Small floats are attractive to day traders because they mean that supplies of shares are relatively low. When share supplies are low, any uptick in demand can lead to significant price appreciation. As with anything else, when demand is high and supplies are low, prices must go up.
All over social media this morning, we’re seeing comments about the stock’s low float and how that low float opens the door to an opportunity. Moreover, bullish patterns seem to have been spotted by the masses, and alerts are popping in some of the largest trader chat rooms, only helping to expand the demand for shares.
On the technical side of the coin, all signs seem to be pointing to a strong day, and possible multiple-session run for the top ahead.
Rumors Are Surfacing
There are also rumors surfacing that the company will soon get into the cryptocurrency space. This has been a long-standing rumor, but seems to be getting the life breathed back into it this morning.
The rumor makes sense too.
Dragon Victory International uses blockchain and smart contract technology for tracking within its autoparts supply chain. Considering the fact that the blockchain is home to cryptocurrencies, it only makes sense that jumping into the cryptocurrency space may be the next move for the company.
Some even suggest that it may soon get into automobile-related NFTs.
Nonetheless, it’s important to keep in mind that these are just rumors and there has been no confirmation by the company that it has any intention of breaking into either the cryptocurrency space or the NFT space.
The Bottom Line
The bottom line here is simple, we’ve seen this type of move time and time again. When the retail trading community latches onto a stock with a low float, we may see rumors, we may see videos about why the stock is a strong technical play, and we may see speculation about the future, but when these things come together, we definitely see growth. That seems to be the case for LYL stock this morning, making it one for the watchlist.