Shares of Riot Platforms Inc. are experiencing a volatile trading session today. As of 11:37 AM EDT on July 3, the stock is trading at 0.015 (0.12%). However, this flat performance belies the significant price swings seen earlier in the day.
The stock opened for trading at $12.22, just above the previous day’s close of 12.73**. Following this initial spike, the stock failed to hold its gains and gradually sold off throughout the morning, at one point touching a low of $12.09 before settling near its opening price.
Should You Buy or Sell This Stock Today?
The intraday price action presents a mixed picture for traders:
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For Buyers: The initial powerful rally at the market open indicates there is underlying buying interest. However, the inability to sustain those gains suggests that sellers are active at higher levels. Potential buyers might want to wait for the stock to form a stable price base or show signs of another upward push before committing capital.
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For Sellers: The rejection from the morning high of $12.73 could be seen as a bearish signal, indicating a strong resistance level. Traders who are bearish on the stock might interpret this as a sign that the upward momentum has faded for the time being.
Given the current struggle to stay in positive territory after a strong start, the stock appears to be in a state of indecision. Traders should be aware of the potential for further volatility.
Our Opinion on This Stock
Riot Platforms is a company heavily involved in the cryptocurrency sector, specifically Bitcoin mining. As such, its stock performance is often highly correlated with the price movements of Bitcoin and the overall sentiment in the crypto market. The volatility seen today is characteristic of stocks in this industry.
The stock is currently trading in the upper half of its 52-week range ($6.19 – $15.87), which suggests it has had positive momentum over the past year. However, it is still trading well below its 52-week high.
In our view, Riot Platforms stock is a speculative investment best suited for investors with a high-risk tolerance and a belief in the long-term potential of the cryptocurrency market. The lack of a P/E ratio and dividends indicates that it is a growth-focused company, reinvesting its capital into operations. Today’s trading action is a clear reminder that investors in this stock should be prepared for sharp and rapid price movements.
