Harry has posted a Charts of the Day video on ANIK at TheTechTrader site noting: Anika Therapeutics Inc. (ANIK) popped 2.21, or 7.27%, on 900,000 shares on Monday. That’s the biggest volume traded since Aug, about 3 1/2 months. The long-term chart shows a beautiful-rising channel, which, at some point, could get this stock all the way up to 37-38 short-term, and 50 on an intermediate-term basis.
It helps to know the FUNDAMENTAL reason for the pop on share volume and price.
The REASON is that Anika was added to the S&P 600 on Monday morning, so all the fund managers whose funds track the S&P600 had to --- HAD TO ---- rush out and buy the stock for inclusion in their funds.
This was totally expected behavior. As soon as the funds have accumulated the shares they need in order to match their index, they will stop buying and enter a hold period. Once those shares are just sitting in those funds, not getting traded, the trading volume will drop and the price will drop. That too is totally expected.
You see exactly the same kind of phenomenon every time a company is newly added to an index.
I doubt if the stock will get much above 35 or maybe 36 before it starts tumbling back down again. Down to where? My guess is between 28 and 30. Then we will have to wait for another "event" that will fundamentally change things for little Anika.