Profit booking can often prove to be a pretty powerful trigger for a stock price drop and that’s what happened with Grom Social Enterprises Inc (NASDAQ:GROM) stock on Monday, because it fell by 4%.
On Monday, GROM stock fell 3.91% to $1.23 with more than 9.37 million shares, compared to its average volume of 2.18 million shares. The stock moved in a range from $1.1000 to $1.2600 after the trade opened at $1.23.
Despite the fall in the stock price, it is necessary for investors to keep in mind that over the past week the stock has risen another 25%. It might be a good idea to take a look at the original rally that was enjoyed by the title last Friday. There had been no news on the company, but Grom Social stock had emerged as a massive gainer amid intense trading.
In this situation, it may be better for investors to get a better idea of the company in general. It operates an entertainment and social media platform aimed at children. Last year the company was added to the NASDAQ and it was certainly a significant development considering the sheer size of this exchange. Currently, investors would do well to follow the stock and keep an eye out for news about Grom Social.
GROM’s stock is below the 20-day and 200-day moving averages of $1.39 and $2.68 respectively. The stock is trading in the oversold zone with the RSI at 53.