Newegg (NEGG) Stock Climbs To New Highs: What's Going On?

Newegg Commerce Inc (NASDAQ:NEGG) shares surged in Thursday’s trading session, adding to gains of more than 300% over the past month. Here’s a look at what’s going on.

What To Know: Momentum comes amid renewed interest from retail investors. The stock has been trending on various platforms in recent weeks and moving on elevated volume. Thursday’s trading volume of approximately 1 million shares is already approaching the 100-day average of 1.13 million in morning trading.

The momentum comes as Newegg considers adjusting its share sales following a board-approved expansion of its stock sale program. Newegg’s elevated short interest, with over 12% of its float sold short, has also attracted retail investors interested in meme stock-style trades. Former pharmaceutical executive Martin Shkreli recently announced a short position against the stock, which could be fueling increased retail participation.

Technical Factors: Newegg’s stock demonstrates a bullish trend, with a new 52-week high of $137.83 reached on Thursday and a low of $116.41 for the session, suggesting robust buying interest, heightened participation and confidence in the stock’s upward trajectory.

The Relative Strength Index (RSI) stands at 70.12, suggesting the stock is nearing overbought territory, potentially signaling a pullback. Meanwhile, the Moving Average Convergence Divergence (MACD) indicates a bullish crossover, though converging lines hint at waning momentum.

Market analysis reveals a pattern of higher highs and lows, confirming the uptrend. An ascending triangle pattern may be forming, with potential for a breakout above 52-week highs. Benzinga Edge rankings highlight moderate fundamentals, with a Value ranking of 46.3/100 and a Momentum ranking of 99.67/100.

NEGG Price Action: Newegg shares were up 13.2% at $125.25 during regular trading hours on Thursday, according to Benzinga Pro.

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