Overstock.com Inc [NASDAQ: OSTK] was a big gainer in Thursday’s session, and was up by 17.40% at markets close. We last covered this stock on June 24, 2019, when it opened up for trading at $11.83. In the article titled, Overstock.com (OSTK) up in pre-market trading as it bets big on blockchain technology, we noted that, if the stock could push through the $12.09 resistance, there was a good chance that it could sustain its bullish momentum. It did push through it, and has since been on a bullish streak, and by yesterday, it hit a high of $27.38 and was up by 131% since we last covered it.
At the moment, Overstock’s bullish momentum is driven by tZero news. Yesterday, tZero announced that it had partnered with BLOQ FLIX, LLC, the world’s first blockchain entertainment financing company. Under the deal, tZero will offer the technical expertise needed to tokenize BLOQ FLIX. Back in June, Overstock announced it had received several offers as it was looking to sell its e-commerce business. By selling its e-commerce business, it intended to focus more on tZero, and it seems to be making good moves that could help OSTK in the future.
Looking at the charts, Overstock has recently pushed past a key resistance level at $26.72, and held above it at yesterday’s close. If it holds above this level in the day, it could push higher. The volume over the past few days has been on the rise and as of yesterday’s close, over 11 million shares of OSTK were traded.
Besides the tZero news, the sentiment is positive in the overall market. The NASDAQ closed yesterday’s session up by 31.75 points. This is largely driven by hopes of a positive outcome in the U.S – China trade war. Central bank stimulus across major global economies have also helped ease some fears of a recession.