Profit booking can often prove to be a pretty potent trigger for a fall in the stock price and that is what happened with the Grom Social Enterprises Inc (NASDAQ:GROM) stock on Monday, as it declined by as much as 4%.
Trading Data
On Monday, GROM stock fell 3.91% to $1.23 with more than 9.37 million shares, compared to its average volume of 2.18 million shares. The stock moved within a range of $1.1000 – 1.2600 after opening trade at $1.23.
Major Trigger
Despite the fall in the stock price, it is necessary for investors to keep in mind that over the course of the past week, the stock is still up by as much as 25%. It may be a good idea to perhaps take a look at the original rally that had been enjoyed by the stock last Friday. There had been no news about the company at all but the Grom Social stock had emerged as a massive gainer amidst heavy trading.
In this situation, it may be a better idea for investors to perhaps get a better idea about the company in general. It operates an entertainment and social media platform that is meant for kids. Last year the company had been added to the NASDAQ and that was certainly a significant development considering the sheer size of that exchange. Currently, investors could do well to track the stock and keep an eye on the news about Grom Social.
Technical Data
GROM stock is below the 20-Day and 200-Day Moving averages of $1.39 and $2.68 respectively. The stock is trading in the oversold zone with the RSI at 53.
