Dave Inc, (NASDAQ:DAVE) is a top gainer in pre-market this morning. The stock price hit a morning high of $0.95, up over 50% from yesterday’s close.
Why is it moving?
DAVE has traded 3.8 million shares this morning after only 1.5 hours. Yesterday, the trading volume was 10.8 million, five times more than the average of 2.19 million.
The company does not have any specific news, apart from a large advertising campaign that is ongoing. But the large interest in volume can tell a story. Someone knows something, or possibly large retail trader groups like WSB (WallStreetBets) may have taken a liking to it.
How high can it go?
Some small cap names like RedBox (NASDAQ:RDBX) have gone on extensive runs over several weeks. After the first initial pop in price, RDBX went from $2.50 to $18.
As DAVE is a top gainer, many day traders will be interested in the momentum that this will have. We could see the price rally several dollars. However, as there is no specific news, short sellers will see this as an opportunity to short a stock that is trading too high.
What we can guarantee is that the price will see some volatile action. It is a penny stock so it is affordable for many to trade. The market cap is small, only $260M. The short float is 2.67%.
Levels to watch
Some levels to watch on DAVE are:
- $1 psychological
- $1.19-$1.25 gap in price
- $1.50 resistance
Please read our full disclaimers regarding the information published. The above is intended for informative purposes only and should not be taken as investment advice. Trading on leverage can result in losses larger than your initial deposit.