Vislink Technologies, Inc. [NASDAQ: VISL]. Wednesday was a good day for the stock markets. That’s after the Fed chairman made comments, hinting at possible rates cut in the near future. One stock that made comparatively higher gains is Vislink. On Wednesday, this stock recorded gains of 146.99% to close the day at $4.1.
One of the catalysts behind this move was the company’s announcement that it had won a U.S army contract for the supply of intelligence, reconnaissance and surveillance devices. The contract is worth $2.8 million and constitutes 7% of the company’s 2018 revenues. In announcing the deal, Vislink COO, John Payne stated that the company was honored to continue being a trusted partner to the U.S army, and that this contract underscores the company’s capacity to meet all set requirements. This is not the first contract that Vislink has bagged with government agencies. Last month, it got $650k worth of contracts from California and Minnesota law enforcement agencies. The deal with these agencies was for airborne downlink system equipment.
From a look at its price action, Vislink sold off in the later part of Wednesday’s trading after hitting highs of $7.95. It then closed the day at $4.10. This correction that continued until markets close can be attributed to profit taking. After such a parabolic move that saw this stock rise by more than 100% in a single trading session, traders were likely to start taking profits. On the lower side, Vislink had strong support at $3.49, on the 200-day moving average, and it has seem to have broken this level in pre-market trading. This is one stock to keep an eye today but it is a risky one being that it sold off and has broken its 200 day moving average in pre-market trading. VISL is indicating around $2.86 at the time of writing this article.