It is sometimes seen that certain stocks get all the hype in the markets following a significant development of some nature and that is possibly the case with the Hycroft Mining (NASDAQ:HYMC) stock at this point in time.
Trading Data
On Thursday, HYMC stock fell 7.8% to $2.01 with more than 16.34 million shares, compared to its average volume of 51.70 million shares. The stock moved within a range of $1.9800 – 2.1599 after opening trade at $2.17.
Key Analysis
The company emerged as one of the more hyped stocks in the market after AMC made an investment in it and as a consequence, the stock price went through the roof over the course of the past month. The latest rally in the stock has been almost similar to the sort of rallies that were seen in the ‘meme stocks’ last year and hence, one needs to be fairly cautious about it.
The company is involved in the gold and silver exploration space and the AMC investment lit a fire for the stock. After having been trading for only 33 cents a share for quite a while, the stock rallied at an enormous rate and ended up hitting highs of as much as $2.50 a share.
It ought to be noted that despite the current hype and strong rally, it is a stock that remains somewhat risky and until Hycroft Mining comes up with any major success in its exploration activities it may not be the right move to get into the stock.
Technical Data
HYMC stock is trading above the 20-Day and 50-Day Moving averages of $1.89 and $1.14 respectively. Moreover, the stock is trading above the 200-Day moving average of $1.35.
