Why Did MicroAlgo Inc. (MLGO) Plunge 11.16%?

Before the BellFriday, Jul 18, 2025 9:24 am ET

1min read

MLGO

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Aime Summary

- MicroAlgo (MLGO) fell 11.16% pre-market on July 18, 2025, driven by bearish technical indicators and high short interest.

- Key signals include a negative MACD (-0.30), downward Aroon trend, and moving averages above current price ($0.65).

- 74.25% short interest (13.28M shares) amplifies downward pressure, while mixed RSI (36.85) and ADX (7.47) suggest valuation uncertainty.

- Despite bullish ROC (6.56) and CCI (2.08), the stock trades at 10-20% percentile historically, indicating potential undervaluation amid conflicting signals.

On July 18, 2025,

MicroAlgo

Inc. (MLGO) experienced a significant drop of 11.16% in pre-market trading, reflecting a notable decline in investor sentiment.

Technical indicators suggest a bearish outlook for MicroAlgo. The Aroon Indicator entered a downward trend on July 11, 2025, signaling a potential strong downward move. The Moving Averages Convergence Divergence (MACD) indicator is at -0.30, further supporting a sell signal. Additionally, the 20-day and 50-day exponential moving averages are both above the current share price, reinforcing the bearish sentiment.

MicroAlgo's technical analysis consensus is neutral, with a mix of bullish, neutral, and bearish signals. The Relative Strength Index (RSI) is at 36.85, indicating a neutral stance. However, the Trend Strength Indicator (ADX) is at 7.47, suggesting a buy signal, while the Price Rate of Change (ROC) is at 6.56, also indicating a buy signal. The Commodity Channel Index (CCI) is at 2.08, which is neutral.

MicroAlgo has a short interest of 13.28 million shares, representing 74.25% of the float. This high short interest could contribute to the stock's volatility and downward pressure. The current share price is $0.65, trading in the 10-20% percentile range relative to its historical Stock Score levels, indicating a potential undervaluation.

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