KOSS stock price slide may continue as the short position reduces

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Written By: Elliott Laybourne
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    Summary:
  • The KOSS stock price appears long-forgotten, as the retail crowd shift attention away from KOSS Corp, leaving the stock perilously close to breaking down.

The KOSS stock price appears long-forgotten, as the retail crowd shift attention away from Koss Corp, leaving the stock perilously close to breaking down.

Koss Corporation (KOSS: NASDAQ) finished last week at $21.19, down $0.71 (-3.24%).

The excitement surrounding Koss Corp stock has fizzled out. There was a time when the legacy headphone maker was generating quite a buzz on Reddit’s ‘WallStreetBets’ retail investing forum. However, it’s now nowhere to be seen.

WallstreetBets Sentiment Heatmap:

Data from Swaggystocks.com

Furthermore, the short-interest that attracted so many to buy shares in the struggling company has evaporated. This has led to the stock rolling over to a critical support level.

The percentage of shares lent to short-sellers has reduced by 22% and is now just 11.45% of the float. Although still relatively high, there are more appealing options available if you are investing in the hope of a short-squeeze.

Additionally, several recent insider stock sales hardly inspire confidence.

KOSS price forecast

The daily chart shows Koss is now trading below the 50-day moving average at $21.82. Furthermore, on Friday, the price also tested the 100 DMA at $20.91. For now, the longer-dated average is intact, but the momentum looks likely to force Koss Corp below that threshold this week.

In addition, a strong uptrend from January is visible below the price, at $19.20. This provides the last line of defence ahead of a broader decline. Additional targets on the downside are the 11th of May low at $15.57, followed by the 200 DMA at $13.21.

Lower looks favourable from here. However, this bearish view becomes invalid if the price closes higher than the 25th of June high at $26.47.

KOSS stock price (Daily chart)

Now for some perspective: Koss Corp long-term chart

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Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne