ShiftPixy, a gig economy support company, is seeing some serious action today. After a 43% loss during normal trading hours on Wednesday, the stock has made a dramatic recovery with a 121.9% rally. Trading volume is also through the roof, with about 35 million shares changing hands by noon, a significant jump from the daily average of around 75,000 shares.
This kind of unusual — especially compared with its low float of around 1.49 million — is a clear sign of heightened interest and volatility.
Gig Economy Sector Momentum
The gig economy sector, where ShiftPixy operates, is always subject to a lot of speculation and volatility. The current movement in PIXY stock seems to be driven by speculative traders, which could mean another price drop once the rally ends. The stock’s low closing price and low average trading volume make it easy for traders to manipulate, leading to extreme volatility.
PIXY Chart Patterns
Over the past week, ShiftPixy’s chart patterns have shown a rollercoaster of highs and lows. The stock’s volatility is evident, especially considering it’s a penny stock. The recent trading sessions have been particularly volatile, with the stock recovering from a 51% loss to post a 121.9% rally.
Is ShiftPixy Stock a Buy on June 22, 2023?
There’s a lot to consider here. On the one hand, the stock’s recent volatility and low price make it attractive for speculative traders. On the other hand, the stock’s low market capitalization (around $13 million) and status as a penny stock make it a risky proposition. The stock’s long-term trend has been marked by volatility, and there doesn’t seem to be any material change in the company’s fundamentals to justify the recent price movements.
It’s also worth noting that the stock has a low float and a significant percentage of its shares are sold short, which could be contributing to the price fluctuations. This could make it a favorite among meme stock traders looking for the next big short squeeze.
As always, the potential risks of trading a volatile penny stock like ShiftPixy should not be underestimated. It’s crucial to have a trading plan and stick to it. If you’re risk-averse, you might want to steer clear of this one.
Remember, trading is not a game of chance, but a game of skill and strategy. Always do your own research and make informed decisions.
Tim Bohen has no position in any of the stocks mentioned. StocksToTrade.com has a disclaimer.