Why Shares of Ruhnn Holding Limited (RUHN) Surged Today

Ruhnn Holding Limited (NASDAQ:RUHN) is among the top gainers of the stock market today, skyrocketing 10.24% or (0.39 points) to $4.2 from its previous close of $3.81. 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 613826 contracts so far this session. RUHN shares had a relatively better volume day versus average trading capacity of 271.17 thousand shares, but with a 22.61 million float and a 9.48% run over a week, it’s definitely worth keeping an eye on. RUHN share price has been trading recently between $3.47 and $3.88.

The shorts are climbing into Ruhnn Holding Limited (RUHN) stock. The latest set of short interest data was released on 31 July 2019, and the numbers show a rise in short interest in RUHN shares. While short interest still represents only 2.22% of RUHN’s float, the number of shares shorted have risen by 74324. The number of shares shorted advanced to 576710 shares, up from 502386 shares during the preceding fortnight. With average daily trading volumes at 152084 shares, days to cover increased to about 2.333401 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Ruhnn Holding Limited Filed Fiscal Year 2019 Annual Report on Form 20-F” and dated July 30, 2019.

Looking at the current readings for Ruhnn Holding Limited, the two-week RSI stands at 67.3. This figure suggests that RUHN stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current RUHN readings is similarly very revealing as it has a stochastic reading of 66.39% at this stage. This figure means that RUHN share price today is being neutral.

Technical chart claims that Ruhnn Holding Limited (RUHN) would settle between $3.97/share to $4.13/share level. However, if the stock price goes below the $3.56 mark, then the market for Ruhnn Holding Limited becomes much weaker. If that happens, the stock price might even plunge as low as $3.31 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.23. 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.