The stock of Menlo Therapeutics Inc. (NASDAQ:MNLO) is now priced at $1.53 and the shares are 0.05 points up or 3.38% higher compared to its previous closing price of $1.48. The stock had 2.266 million contracts set over the past session. MNLO shares’ daily volume is compared to its average trading volume at 3.844 million shares. However, it has a float of 138 million and although its performance was 2.68% over the week, it’s one to watch. It means the stock’s downside potential is -100% with the MNLO share price recently placing at $1.45 to $1.59. However, some brokerage firms have priced the stock below the average, including one that has called $3.

The shorts are running away from the Menlo Therapeutics Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the MNLO shares have declined. Short interest in the stock represents just 7.21% of its float, but the volume has dropped by -374205. The volume of shorted shares dropped to 9.963 million from 10.337 million shares over the last two weeks. The average intraday trading volume has been 2.014 million shares, which means that days to cover moved to roughly 4.945929.

In the last trading session, Menlo Therapeutics Inc. (NASDAQ:MNLO) raised by $0.04 over the week and lost -$0.19 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $7.48. The stock recorded its established 52-week high on 01/17/20.

Since 04/08/20, the stock has traded to a low of $1 at 53%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.

Looking at current readings, Menlo Therapeutics Inc.’s two-week RSI is 45.08. This suggests that the stock is neutral at the moment and that MNLO shares’ price movement remains stable. The stochastic readings are equally revealing at 36.37% meaning the MNLO share price is currently in neutral territory.

The technical chart shows that the MNLO stock will likely settle at between $1.5967 and $1.6633 per share. However, if the stock dips below $1.4567, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $1.3833.

Currently, the stock is trading in the red of MACD, with a reading of -0.0322. 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.

Analysts at Maxim Group assigned MNLO a rating of Outperform in their intiating review released on May 21. Barclays analysts see the stock as a Overweight with a target price of $8 in a flash note released to investors on March 25 initiating covering the stock. BofA/Merrill analysts see the stock as Buy when the analysts initiated the share price coverage on March 11, placing it at $8.

The average rating for the MNLO equity is 1.89 and is currently gathering a bullish momentum. Of 9 analysts tracking Menlo Therapeutics Inc. polled by Reuters, 0 rated MNLO as a hold. The remaining 9 analysts were split evenly. However, the split wasn’t equal as a majority (9) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.