It’s understandable why traders are protecting Jiayin Group Inc. (JFIN)

Jiayin Group Inc. (NASDAQ:JFIN) is one of the stocks that are grabbing investor focus today: skyrocketing 9.32% or (0.98 points) to $11.5 from its previous close of $10.52. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 168533 contracts so far this session. JFIN shares had a relatively better volume day versus average trading capacity of 269.27 thousand shares, but with a 3.5 million float and a -4.97% run over a week, it’s definitely worth keeping an eye on. JFIN share price has been trading recently between $10.3513 and $10.65.

The shorts are climbing into Jiayin Group Inc. (JFIN) stock. The latest set of short interest data was released on 15 May 2019, and the numbers show a rise in short interest in JFIN shares. While short interest still represents only 4.36% of JFIN’s float, the number of shares shorted have risen by 144837.59. The number of shares shorted advanced to 152656 shares, up from 7818.41 shares during the preceding fortnight. With average daily trading volumes at 180854 shares, days to cover decreased to about -4.76▼ 0.06% days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Jiayin Group Reports First Quarter 2019 Unaudited Financial Results” and dated June 11, 2019.

Looking at the current readings for Jiayin Group Inc., the two-week RSI stands at 0. This figure suggests that JFIN stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current JFIN readings is similarly very revealing as it has a stochastic reading of 31.66% at this stage. This figure means that JFIN share price today is being neutral.

Technical chart claims that Jiayin Group Inc. (JFIN) would settle between $10.66/share to $10.81/share level. However, if the stock price goes below the $10.36 mark, then the market for Jiayin Group Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $10.21 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.1. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.