Check out the volume in $RELY – May 31, 2023
This is Scott with your Chart of the Day. I want to take a look at Remitly Global ( NASDAQ: RELY ). Now, what sticks out to me on this chart right away is the volume. We have had some nice big volume spikes over the last couple of months here.
You can see back in March of this year, a big volume spike and a big gap up, it was probably earnings related, I’m guessing. And then today, we have another big volume spike and a push through the 50-day moving average, the 8-day moving average, and the 21-day moving average. So a big bullish engulfing candlestick through a cluster of moving averages.
I always like to pay attention to that because, typically, if you are coming through the underside of the moving averages they can act as resistance zones. And sometimes those resistance zones are strong. But you can see the power through this move, and the volume to back it up.
This is definitely a stock that I want to keep an eye on because it has clear support right around this swing low just under $17.00. And clear resistance right there, right around 19.33. And so I want to see if this stock can break through that level and get going, and continue this nice uptrend that it has been in. If I zoom out here, you can see that this was a new IPO from back in 2021, which was a good year for IPOs, but this one didn’t really do much.
Now, I want to see if this stock has the potential to, maybe, come back up and test some of these upper levels. You can see the last couple of months and even a year or so, it has just kind of been bottoming. It has been in a long kind of institutional discovery phase here. Where institutions kind of learn about the stock, figure out what it does, and then it has a nice tight range going sideways here.
And then finally, in 2023, a breakout back through all the major moving averages and it starts marching up. So it has had quite a journey off of the lows here, from the low down here at $9.00 it is now up here, as you know, at around 18.00. So this trend could be strong and could continue as more institutions learn about this stock and find it on their scans.
One of the things that brought it up on my scan today was its relative strength, versus most of the other stocks in the market. As you know, today was a down day in the S&P 500 ( NYSEARCA: SPY ), kind of a lower move, it just kind of marked time. But RELY ( NASDAQ: RELY ) was up, and up on big volume.
So I have a feeling people are going to be paying attention to this stock, and that makes me want to pay attention to it as well. This is one that is going to be on my watch list for the next week and a half or so, to see if this can resolve to the upside and I wanted to share it with you.
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