Geospace Technologies Corp.: Will GEOS Stock Retest The $14.59?

• Geospace secured a $5.7 Million contract for specialized Geophones.
• GEOS stock jumped 17.65% in the past month.
• GEOS stock closed at $12.20 with a gain of 2.52% in the past intraday session.

Geospace Technologies Corp. engages in research and development, designing and manufacturing seismic and non-seismic instruments for the oil and gas industry. The oil and gas market segment holds most of the company’s revenue. 

Geospace Secured $5.7 Million Contract for Geophones

On August 30, 2023, Geospace Technologies Corp. secured a contract worth $5.7 Million with an international seismic contractor for specialized Geophones. The company will design these Geophones for vibration monitoring in a rugged and rough environment. Furthermore, the expected deliveries will start in January 2024.

The GEOS stock jumped about 17.65% over the past month and is now trading near the $12 level with a slight pullback. However, the stock price closed at 12.20 while witnessing a gain of 2.52% in the previous intraday session, reflecting the strong presence of buyers in the market. 

On a higher timeframe, the price got stuck in a consolidation between the $8.24 and $7.22 range from June 29 to August 10, 2023. However, the confluence between the bulls and bears prevailed over the bulls due to the second quarter’s profit margin of 14.78% and the profitable net income of $4.64 Million. 

After August 10, 2023, GEOS stock price experienced a strong rally while attaining higher highs. The uptrend momentum elevated the price by about 88%. Hence, the stock price achieved its annual high on September 25, 2023. It did not sustain that and was halted at the $14.59 resistance level. 

Recently, the price faced a short-term pullback, with a loss of 11.21% over the past week. Thus, it shows increased involvement of sellers in the market. Moreover, GEOS stock price is hovering below the short-term 20-day EMA.

If the price bounces back and conquers the 20-day EMA, it might surge and retest the previous resistance of $14.59. On the contrary, if the bullish momentum is sustained and Geospace’s stock attracts more sellers, the price might melt toward the $10 mark. Thus, it will retest the 50 and 100-day EMAs. 

Will GEOS Stock Retest the Annual High?

The year-to-date return of GEOS stock reflects an astonishing performance of 187.47%. Geospace Technologies Corp. performed better in the 2023 fiscal year than in the last 5 years. However, the market capitalization of Geospace Technologies Corp. is $160.9 Million.

The RSI is hovering near the 50-neutral zone with a score of 53.66, indicating slight strength in the market during the intraday session. However, the CMF trades below the 0.00 mark, at -0.05, suggesting prolonged weakness and bearish sentiment in the market.

Conclusion 

Geospace Technologies Corp.’s (NASDAQ:GEOS) stock price faces a short-term pullback while pursuing an uptrend trajectory. Traders should look for buying opportunities as the technical parameters favor the same. 

Technical Levels 

Major resistance: $14.59 and $12.59

Major support: $3.96 and $5.27

Disclaimer:

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