Glu Mobile Inc. (NASDAQ: GLUU) is having a strong start to the trading session this morning, but if you go looking for news that could be the reason for the gains, you’re not going to find any. There has been no press releases or SEC filings issued. Nonetheless, we believe that we’ve found the reason for the gains. Today, we’ll talk about:
- Why GLUU is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why GLUU Is Headed Up
As mentioned above, Glu Mobile is having a strong start to the trading session this morning, but the company hasn’t released any news that could be the reason for the gains. So, what’s the deal? Well, the movement seems to be all technical.
For the past several trading sessions, GLUU has been having a bit of a hard time in the market. The stock has been falling from early month highs just about all month. This has created some flashing technical indicators, suggesting that the stock has reached support.
At the same time, due to the declines that we’ve seen on the stock as of late, and the trend that suggested they might continue, short interest has been running relatively high. So, when support was reached and traders started to push the stock upward, we started to see a short squeeze, which we believe is the reason that GLUU is running for the top in the market this morning.
The Gains In The Stock Are Pretty Impressive
While there was no news released that caused the monumental gains we’re seeing in Glu Mobile today, technical data often leads to big runs. That’s exactly what’s happening today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:34), GLUU is trading at $6.63 per share after a gain of $1.02 per share or 18.18% 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 GLUU. In particular, we’re interested in following this short squeeze to see if it goes any higher from here. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks.
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