Dallas, Texas 04/17/2014 (FINANCIALSTRENDS) – Sodastream International Ltd (NASDAQ:SODA) made a substantial gain on Wednesday with a gain of 8.12% the biggest in last few weeks, the stock soared and closed at $40.75. The stock had been on downward bias in the last few weeks, it managed to get this gain as a result of rumor that stated the company plans to sell stake to Pepsi or starbucks.
Sodastream International Ltd (NASDAQ:SODA) broke above its critical resistance level of
$40.75 which is its 50 day moving average, the stock is currently trading below its 200 day moving average which is currently at $53.08.
The momentum indicators on the daily charts are in the oversold region, but sharp turn is visible this is a bullish sign, the relative strength index also took a sharp upward turn on Wednesday, this indicates a possible trend reversal has come in the stock, the stock may see an upward bias in the making, The stock lost its ground in last few weeks, this trend reversal could see the stock cover its losses and even break above its previous highs.
According to the daily charts, from the current levels the stock has a support around $40 and a breakout below this level could see the stock test $35.43 levels where it has shown strong support previously. On an upside from the current levels, the stock may test 43.58 levels, the next resistance for the stock can be seen around $50.98 levels.
The stock saw this surge on Wednesday after a rumor from calcalist (Business daily) about the Sodastream International Ltd. Selling stake of 10-16% at a price of $52 per share to companies like Pepsi or starbucks. But Sodastream International Ltd management denied all the rumors related to any sale of stake to the alleged companies.