Home Stock Is it too late to buy Renren stock on Monday?

Is it too late to buy Renren stock on Monday?


Renren Inc. (NYSE: RENN) stock closed soared higher on Friday and hit a new 52-week high of $25.57. Renren’s payment of at least $300 million to resolve a shareholder lawsuit in which corporate executives were accused of usurping the firm’s billion-dollar investment portfolio has piqued the interest of investors.

On Monday, the stock was trading near the $24.50 level, implying shares are not far removed from their peak.

Renren stock technical analysis

On Friday Ren closed $7.38 higher than Thursday’s closing price- a 44% increase in a single day, but will Ren be able to sustain this huge spike? Let’s take a look at the chart and see if we can find some clues.

There was a huge volume spike on Thursday and Friday,  however, volume cooled down, implying sellers are perhaps booking their hefty profits from this spike.RSI also touched 90 on its peak on Friday, which shows it is extremely overbought and a pullback can be expected very soon.Whenever there are huge moves recorded due to positive news, many traders enter into positions due to the fear of missing out on profits, due to this many traders enter at very high prices and get stuck in the trade which may also become the case in Ren, thus caution has to be taken by keeping stop losses.Sellers are bound to come in at any moment now as they would like to secure their profits.

Having a closer look at the daily chart of Ren we can see what the stock is indicating for the future.

Ren has made a strong bearish divergence on Friday and a breakdown below the levels of $23.35 may be the start of the pullback in RenAs there are no clear supports, Ren can fall back to any level which is why long entries should be avoided.Red selling volumes started increasing on Friday, showing that sellers are increasing as the price is consolidating.


With very few levels of supports, long entries are extremely risky in Ren, moreover, a pullback should be expected very soon. The pullback could cause new buying opportunities to appear but one must be very cautious and avoid large quantities as Ren is an extremely volatile stock.

The post Is it too late to buy Renren stock on Monday? appeared first on Invezz.

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