IMPP Stock (NASDAQ: IMPP) price surges 9% approximately in a previous session. It shook out the short sellers and created a fear of short squeezes.
Imperial Petroleum stock is trading below the 50-day and 200-day EMA. It showcases that the stock is in a strong downtrend and bears are dominating on higher levels.
However, the IMPP stock price has gone far away from the EMAs so pull back is possible to test the EMA. For the past couple of months, IMPP stock has traded in the range between $2.00 to $4.00. It showed signs of long-term base formation.
But, unfortunately in the mid of August, IMPP shares collapsed and fell 35% in a single day. It opened the regular session with a massive gap down and prices slipped below the $2.00 support. The massive gap down created fear and invited the next phase of sell-off.
Later, IMPP stock price corrected another 35% and hit a 52-week low at $1.79. However, after the massive sell-off in the past few days, the stock finally took support and showed a minor bounce.
Will IMPP Stock Price regain $2.00?
IMPP Stock (NASDAQ: IMPP) price is highly bearish on daily, weekly, and monthly time frames. Till the stock price trades below $3.00, any short-term pullback rally will face difficulty to hold the higher levels.
IMPP stock is oversold and due to this, a short squeeze may trigger to clear out the previous short positions. Until buyers succeed to break out of $3.00 the rally will be considered speculative.
The analysis suggests that IMPP share price is in bear grip but the downside momentum is getting exhausted. So, buyers might try to regain the $2.00 level.
Imperial Petroleum Stock Price Analysis
Imperial Petroleum stock price fell 52% in the current month and formed a giant bearish candle. It corrected a lot so minor consolidation or pullback rally is pending.
The MACD displayed a negative crossover and the curve slopes down. It indicates the sellers are still active and it’s going to be difficult for bulls to regain the $2.00 mark. The RSI at 24 denotes weakness but a relief rally is possible from oversold territory.
Conclusion
IMPP Stock (NASDAQ: IMPP) price fell by 52% in the current month. Due to this, prices entered into oversold territory which increases the possibility of a short squeeze.
Technical levels
- Resistance levels: $2.00 and $2.50
- Support levels: $1.20 and $1.00
