Stocks To Watch: Riot blockchain, Inc [NASDAQ: RIOT] has been slowly rising the past few days and seems as though it could gain some momentum. In yesterday’s trading session, this stock gained by 3.30% and is holding on to these gains pre-market. The price action of this blockchain and cryptocurrency focused company is driven mainly by speculation in the options market.
On September 10th, its implied volatility for the January 15th, 2021 put options was much higher the rest of the equity markets. This means that options traders are pricing in a significant price move in this company’s stock. This also reflects in the positive analyst sentiment towards this stock at the moment.
Looking at the daily chart, RIOT could be poised for a short term move technically. From a technical standpoint, the trigger could be around the $2.40 range to the upside and on the support side it appears to be between $2.07 to $2.20. RIOT bottomed-out from a multi-month bear run in August, and through September, it has been gaining. Yesterday, this stock traded between $2.07 and $2.20. It has pushed above this level in pre-market trading and is currently at $2.30.
In the day, factors that could impact on its price action include the upcoming Fed announcement and the continued uncertainty in the Middle East. The Federal Open Market Committee (FOMC) will deliver a rates decision at 2:00 p.m. ET. Investors expect the FOMC to cut rates by another 25 basis points. A rate cut higher than 25 basis points could give a huge boost to the markets, and uplift most equities. For a stock like RIOT that is trying to gain bullish momentum, this factor could help it technically. A resilient U.S economy too could see the market begin to price in a continuation of the bull market, and a decline in the prospects of a recession.