ReShape Lifesciences Soars 66.99% on Nasdaq Merger Approval: A Biotech Merger Sparking Market Frenzy

Summary
• RSLS shares surged 61% on Wednesday, driven by Nasdaq’s approval of its merger with Vyome Therapeutics.
• The merger is set to finalize on August 15, 2025, under the new ticker HIND.
• A 1-for-4 reverse stock split will take effect alongside the merger.

ReShape Lifesciences (RSLS) has erupted from $2.03 to $3.39 in a single session, trading as high as $4.05 and as low as $2.04. This unprecedented move is fueled by the Nasdaq-listing approval of its merger with Vyome Therapeutics, a clinical-stage biotech. The stock’s 66.99% intraday gain has ignited retail and institutional speculation, with the reverse stock split and new entity formation adding layers of complexity to the trade.

Nasdaq Merger Approval Ignites ReShape Lifesciences' 61% Surge
The meteoric rise in RSLS shares stems from Vyome Therapeutics’ confirmation that Nasdaq has approved its listing following the merger with ReShape. The deal, set to activate on August 15, 2025, will rebrand the combined entity as Vyome Holdings, Inc. (HIND). The 1-for-4 reverse stock split, announced by ReShape’s board, has further amplified investor urgency, as existing shareholders will see their holdings consolidate. Retail sentiment on Stocktwits shifted from bearish to bullish, with message volume spiking to 'high' levels. The merger’s approval aligns with Vyome’s strategic focus on immuno-inflammatory diseases, a $100B market, and its cross-border US-India innovation corridor. This catalytic event has transformed RSLS from a 99% YTD loser into a speculative darling.

Navigating RSLS' Volatility: ETFs and Technicals in Focus
• RSLS RSI: 24.0157 (oversold territory)
• MACD: -0.162 (bearish divergence), Signal Line: -0.110
• Bollinger Bands: Price at 3.323 (upper band), 2.602 (middle), 1.881 (lower)
• 200-day MA: 3.1485 (current price at 3.39, above)

RSLS is trading in a textbook short-term bearish pattern, with RSI signaling oversold conditions and MACD diverging negatively. However, the stock’s proximity to the upper Bollinger Band (3.323) and 200-day MA (3.1485) suggests a potential bounce. Traders should monitor the 3.323 level as a key resistance; a break above could trigger a retest of the intraday high of $4.05. The 2.602 middle band acts as a critical support. Given the absence of options liquidity and the stock’s hyper-volatility, a cash-secured short-term call spread or a tight stop-limit order above 3.323 may be prudent. The lack of leveraged ETFs complicates direct sector exposure, but Amgen (AMGN)’s 1.42% intraday gain hints at broader biotech resilience.

Backtest ReShape Lifesciences Stock Performance
The RSLS ETF has historically struggled to deliver positive returns following a significant intraday surge of 67% or more. The backtest data shows a 3-day win rate of 37.26%, a 10-day win rate of 37.50%, and a 30-day win rate of 32.55%. Additionally, the ETF experienced a maximum return of only -0.18% within 30 days of the surge, indicating that the optimal trading window for positive returns is short.

RSLS at a Crossroads: Merge-Driven Momentum or Short-Term Spike?
ReShape Lifesciences’ 66.99% surge is a high-stakes gamble on the success of its merger with Vyome. While the Nasdaq approval and reverse split have injected liquidity, the stock’s technicals remain fragile. A sustained break above 3.323 could validate the bullish case, but a retest of the 2.602 middle band would signal exhaustion. Investors should closely watch Amgen (AMGN), the sector leader up 1.42%, as a barometer for biotech sentiment. For now, the trade hinges on the August 15 listing’s execution and Vyome’s ability to deliver on its immuno-inflammatory pipeline. Act now: Secure a tight stop-limit above 3.323 or consider a short-term call spread to capitalize on the volatility.