Flex Pharma Inc (NASDAQ: FLKS) is having an incredibly strong start to the trading session this morning. However, if you’re looking for SEC filings or press releases, you may be disappointed. The company hasn’t issued any news.
So, what’s the reason for the run? We believe that we’ve found the likely culprit. Today, we’ll talk about:
- Why FLKS stock is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why FLKS Is Climbing
As mentioned above, Flex Pharma is having a great day in the market today. However, with no news issued by way of press release or SEC filing, many are wondering exactly what’s going on here. We believe that we’ve found the cause.
In our digging, one thing that popped out quite a bit on social communities was a potential merger. There’s a lot of chatter surrounding a merger/acquisition of the company. However, this is nothing more than rumors. We’ve dug into FLKS and have found no insinuation that the company is going to announce merger or acquisition news any time soon. Sure, it would be great, but it’s not likely the reason for today’s gains in value.
So, what’s the deal? Well, it seems to be a technical one. The technical patterns on the FLKS stock chart are pretty strong, suggesting that the run may just be beginning. In fact, the stock is only $0.07 from its next point of resistance. If the stock breaks through the $0.76 mark, we could see gains in multiples as technical traders won’t be able to get enough.
What We’re Seeing From The Stock
While no news has been released by Flex Pharma, the technical picture of the stock is a pretty one, with clear patterns suggesting that the gains may not be over yeat.
Considering this, it’s not surprise to see that traders are jumping in on the ticker, sending it upward. As is just about always the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (10:08), FLKS is trading at $0.69 per share after a gain of $0.14 per share or 25.07% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on FLKS. In particular, we’re interested in seeing if the stock breaks above the $0.76 mark as a break could mean big gains ahead. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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