Ra Medical Systems Inc. (NYSE: RMED) stock surged 87% on Monday following a short squeeze because it had a high number of short-sellers. The stock has a small float of around 2.68 million shares with a short percentage of 40%, making it a good candidate for a squeeze with volume.
Ra Medical surges above 200-day moving average
On Monday, Ra Medical Systems shares were flying and saw a surge above the average volume. Shares traded above a 50-day moving average and crossed above the stock’s 200-day moving average, signifying that sentiment on the stock is bullish.
The stock had a large gain near resistance but didn’t hold above the resistance levels of $9, with shares seeing a correction. In the last session, the shares lost 19.58% to close at $7.35. The $5 level is likely to hold support for RMED considering the area has held support before, and currently, the stock trades above that level. The 2.86 million float is low, with a very high short percentage at 49.75%. As a result, this qualifies the stock as a possible squeeze candidate, and traders should be cautious as the stock can plunge as fast as it surged.
Interestingly bullish investors are expecting the stock to jump above the $9 resistance level. If the stock can cross the level and consolidate above the resistance, then the stock could be ready for further upwards push.
Ra Medical reported Q1 2021 results
Recently, the company reported its Q1 2021 financial results and offered business updates. The company indicated that it enrolled 20 subjects in its atherectomy pivotal clinical trial, and so far, to date, a total of 50 subjects have been enrolled. With COVID-19 restrictions lifted, the company saw an improvement in its dermatology segment revenue.