Nuformix PLC (LON: NFX) share price surged 12.7% despite the pharmaceutical company not making significant announcements today. Here’s why.
The lack of news from the company indicates that today’s move higher was primarily driven by buying pressure from investors and positive sentiment.
The last significant announcement from Nuformix was in September when it signed an exclusive licensing deal with Oxilio Ltd to develop and commercialise its cancer drug.
While there is no direct trigger behind today’s rally, we know that the one single driver behind a rallying share price is buying pressure.
Therefore, we can confidently say that a wave of buying pressure has hit Nuformix share, triggering the rally.
The buying pressure could be from a single institutional investor accumulating a significant position in the pharma company, or it could be from a group of investors with a bullish view of the stock.
From a technical analysis standpoint, Nuformix shares have pushed back above the crucial 1.30p resistance level that could now act as support.
However, we would need to see further gains before saying that the resistance level has turned into support. Currently, we could see the price fail to hold above the level leading to a further decline.
Investors interested in opening new bullish positions in the stock should wait for the price to hold above the support zone and retest it before jumping in.
*This is not investment advice.
Nuformix share price.
Nuformix share price surged 12.71% to trade at 1.33p, rising from Wednesday’s closing price of 1.18p.
Should You Invest in Nuformix Shares?
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It’s a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now