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The Nanoco share price is up 0.77% this Wednesday, recovering slightly after yesterday’s drop, which wiped out the gains from the previous two trading sessions. Throughout 2022, Nanoco’s share price has seen periods of notable increases. One significant jump occurred in May when the stock rose nearly 50% following a favorable ruling in a patent infringement case against Samsung.
This upward momentum continued into mid-June after the company announced that it expected to exceed its previous revenue forecasts for the fiscal year 2022. This optimistic outlook was bolstered by a new work package with a European client that commenced on May 1.
Recently, Nanoco Group completed a successful fundraising round, which was described as oversubscribed. Despite a non-executive director selling 5,000,000 shares at an average price of 34p, the stock has remained stable. The director, Henry Turcan, had a series of transactions in June 2022, including a sale of 2,768,626 shares at 41p, followed by two purchases at lower prices before the most recent sale.
Currently, the stock is trading within a range, with the 41.0 price level (marked by the lows of June 16 and the highs of July 19 and 21) acting as resistance, and 39.0 (noted as the high on May 30 and the low on July 22) serving as support. A breakout above 41.0 would need to clear the June 16 high and psychological barrier at 39.0 to reach the next target of 44.4.
This 44.4 level, which aligns with the highs of June 13 and 15, is the final obstacle before the stock could potentially reach its 2022 high of 47.9, recorded on June 8. On the downside, if the price falls below the 39.0 support level, it could target 35.6, where previous lows were observed on May 24 and June 21.
The low of 38.8 from July 21 might act as an interim support level. However, if the bears push the price below both 38.8 and 35.6, the next target would be 32.8, the low from May 18. Should the bulls fail to defend this level, the price could drop further to 29.6.