Senmiao Technology Limited (AIHS): Why It Jumped 6.02% Today, And What Comes Next

Big changes are happening at Senmiao Technology Limited (NASDAQ:AIHS), which makes the stock worth watching today. The company is among the top gainers of the stock market today, skyrocketing 6.02% or (0.03 points) to $0.44 from its previous close of $0.41. 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 225914 contracts so far this session. AIHS shares had a relatively better volume day versus average trading capacity of 67.48 million shares, but with a 10.45 million float and a -23.15% run over a week, it’s definitely worth keeping an eye on. AIHS share price has been trading recently between $0.38 and $0.5495.

The shorts are running away from Senmiao Technology Limited (AIHS) stock. The latest set of short interest data was released on 15 August 2019, and the numbers show a drop in short interest in AIHS shares. While short interest still represents only 0.65% of AIHS’s float, the number of shares shorted have fallen by -47526. The number of shares shorted fell to 67623 shares, down from 115149 shares during the preceding fortnight. With average daily trading volumes at 79438 shares, days to cover decreased to about 1.984335 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Senmiao Technology Announces Unaudited Financial Results for First Quarter of Fiscal Year 2020” and dated August 14, 2019.

During the recent trading session for Senmiao Technology Limited (NASDAQ:AIHS), the company witnessed their stock drop by $-0.11 over a week and tumble down $-0.59 from the price 20 days ago. When compared to their established 52-week high of $7.38, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 03/15/19. The recent low of $0.38 stood for a -94.04% since 09/09/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Senmiao Technology Limited, the two-week RSI stands at 25.3. This figure suggests that AIHS 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 AIHS readings is similarly very revealing as it has a stochastic reading of 6.38% at this stage. This figure means that AIHS share price today is being overbought.

Technical chart claims that Senmiao Technology Limited (AIHS) would settle between $0.52/share to $0.62/share level. However, if the stock price goes below the $0.35 mark, then the market for Senmiao Technology Limited becomes much weaker. If that happens, the stock price might even plunge as low as $0.28 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.07. 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.

Moving on, AIHS stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is NA while for the average stock in the same group, the multiple is NA. Senmiao Technology Limited current P/B ratio of NA means it is trading at a premium against its industry’s NA.