Newegg Commerce Inc. (NASDAQ:NEGG) shares are trading higher on Wednesday, hitting fresh 52-week highs as strong trading momentum and renewed retail investor interest pushed the stock sharply higher.
Find out how NEGG stock is doing now here.
What To Know: The e-commerce company has surged more than 1,500% over the past three months, with Wednesday's move adding to an extraordinary run fueled by heavy volume and speculative activity.
The stock traded as high as $124.99 during the session, with volume reaching 1.36 million shares, well above its 100-day average. Technical indicators show Newegg in a strong uptrend, with a series of higher highs and higher lows forming an ascending triangle pattern. Traders pointed to the stock's momentum score of 99.49 on Benzinga Edge rankings as evidence of continued strength, though some noted its relative strength index at 80.7 places it in overbought territory, raising the possibility of a pullback.
Part of the rally is tied to short interest, with more than 12% of Newegg's float currently sold short. The elevated short positioning has made the stock a target for retail investors who have shown renewed appetite for meme stock-style trades.
At the same time, Newegg has been in the spotlight since July 15, when it announced a sales agreement to offer up to $65 million in common stock, a move that has since been followed by a sustained surge in share price.
The latest rally underscores how a mix of short covering, trading volume, and speculative enthusiasm can send heavily watched names sharply higher in a short time frame.
NEGG Price Action: Newegg shares closed Wednesday up 23.6% at $110.64, according to Benzinga Pro.
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