Long-Term Reversal Signal on Cowen Group Inc (NASDAQ:COWN) Shares

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Cowen Group Inc (NASDAQ:COWN) shares advanced 12.13% on Tuesday to $3.42, showing upside momentum towards its 52-week high at $6.59.

Cowen Group Inc (NASDAQ:COWN) is a financial services company that provides alternative investment management, investment banking, research, sales and trading, and prime brokerage services. It operates through two main segments: the alternative investment segment, which includes hedge funds, private equity structures, registered investment companies and listed investment vehicles, and the broker-dealer segment, which  offers industry focused investment banking for growth-oriented companies, including advisory and global capital markets origination and domain knowledge-driven research and a sales and trading platform for institutional investors under the Cowen name.

On the stock’s daily time frame, a complex double bottom pattern can be seen as it failed in its attempts to break below the $2.60 support area. Price is now on its way to test the formation’s neckline at the $4.00 mark, which is near the 200 SMA dynamic inflection point.

Speaking of moving averages, the 100 SMA is below the 200 SMA for now so the path of least resistance is to the downside. However, the gap between the SMAs is narrowing so an upward crossover might be imminent, potentially drawing more buying pressure to the mix.

RSI is on the move up so Cowen Group Inc (NASDAQ:COWN) share prices could follow suit. A break past the neckline could put shares on track to testing the yearly highs at $6.59 but if it holds as resistance, price could drop to the $3.00 level once more.

Earlier in the month, the company announced that Robert Paglione joined their Equity Sales and Trading team and will serve as the Boston Regional Manager overseeing Boston Equity Sales in partnership with Jimmy Ward. This is expected to further advance the company’s position regionally in prime brokerage, electronic trading, derivatives, as well as equity research.

 

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