Maxcyte Inc (LON:MXCT) cover image
295 Reads (2 mins read)

Will Maxcyte Inc's price keep rising?

26th Jan by Ben Hobson

Studies by leading experts into the power of price momentum show that stocks with the strongest price trends can potentially keep up the pace for anywhere up to one year. A big part of the reason for this is down to investor psychology. 

With that in mind, shares in Maxcyte Inc (LON:MXCT) have been in an uptrend in recent months, and the question now for investors is whether that price strength will continue.

Knowing exactly what drives relative strength in share prices can help you find profitable trades based on momentum – but does Maxcyte Inc fit the bill?

GET MORE DATA-DRIVEN INSIGHTS INTO LON:MXCT »

Maxcyte Inc (LON:MXCT)'s performance to date

In terms of relative price strength the stock has performed well against the market over the past year:

Relative strength is a useful tool in the armoury of technical traders and investors. It’s an instant measure of how a stock has performed in comparison with a benchmark.

And while there are no certainties about which way a stock will move next, research shows that price trends often persist. Why is this? Studies broadly show it is down to:

  • Initial under-reaction by investors- prices are slow to move up because investors are hesitant to bid prices higher in stocks that have already been on a strong run.
  • Delayed over-reaction - investors chasing rising prices attract the attention of other investors, who follow them into those trades, pushing prices higher and higher.

In both cases, stocks with positive price momentum often see their prices trend higher.

What does this mean for potential investors?

Maxcyte Inc is currently among the stocks with the strongest six-month and one-year relative price strength in the market. But momentum on its own is no guarantee of future returns. 

To get a better idea about whether this momentum will continue, it's worth doing some investigation yourself. Indeed, we've identified some areas of concern with Maxcyte Inc that you can find out about here.

Alternatively, if you'd like to find more shares with strong price momentum, you can find them on this Positive Momentum screen.

Share this article
As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.
Share Price
890p
Change Today
-1.11%
Maxcyte Inc ( )

Stockopedia is here to help individual investors beat the markets by being the very best in stock analysis, research & community. Take a 30 day free trial of our extensive multi-award winning service and find out why more than ten thousand global investors can't live without it.

© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.