The stock of Canaan Inc. (NASDAQ:CAN) is now priced at $1.97 and the shares are 0.09 points up or 4.79% higher compared to its previous closing price of $1.88. The stock had 2.128 million contracts set over the past session. CAN shares’ daily volume is compared to its average trading volume at 3.668 million shares. However, it has a float of 133 million and although its performance was 0% over the week, it’s one to watch. It means the stock’s downside potential is -100% with the CAN share price recently placing at $1.87 to $2. However, some brokerage firms have priced the stock below the average.
The shorts are running away from the Canaan Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the CAN shares have declined. Short interest in the stock represents just 1.16% of its float, but the volume has dropped by -342226. The volume of shorted shares dropped to 1.543 million from 1.885 million shares over the last two weeks. The average intraday trading volume has been 3.941 million shares, which means that days to cover moved to roughly 1.
Looking at current readings, Canaan Inc.’s two-week RSI is 43.99. This suggests that the stock is neutral at the moment and that CAN shares’ price movement remains stable. The stochastic readings are equally revealing at 15.81% meaning the CAN share price is currently in overbought territory.
The technical chart shows that the CAN stock will likely settle at between $2.0233 and $2.0767 per share. However, if the stock dips below $1.8933, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $1.8167.
Currently, the stock is trading in the red of MACD, with a reading of -0.0367. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
The stocks P/S ratio currently stands below the group’s average of 16.1. Canaan Inc. has its P/E ratio at 3.2, which means that the stock is currently trading at a discount relative to the 4 industry average.