How might the announcement influence the stock's price action and trading volume in the short term?

Fundamental impact – The second food‑grade contract reinforces FSI’s pivot into higher‑margin, recurring‑revenue segments (nutrition‑supplement and food‑manufacturing). Management now has two sizable, presumably multi‑year contracts that should lift near‑term earnings guidance and improve cash‑flow visibility. With a sentiment score of 70, the market will read the news as a clear catalyst, prompting short‑term buying pressure as analysts upgrade the stock and institutional desks add exposure.

Short‑term price & volume dynamics – Expect an immediate volume surge as the press release circulates on newswires and the “contracts” category. In a typical breakout scenario, the next‑day candle will likely open above the prior close and test the nearest resistance level—historically around the 20‑day SMA (≈ $1.85) on the daily chart. If the price can clear that barrier with the heightened volume, a momentum‑driven rally toward the next resistance at $1.95 is plausible. Conversely, if the move stalls below the 20‑day SMA, the spike may be a short‑lived “news‑flash” bounce, and the stock could revert to the $1.80‑$1.82 range.

Actionable trade ideas

- Long‑breakout play: Enter a market‑order at the first sign of a close above $1.85 with volume at least 1.5× the 10‑day average. Target the $1.95 resistance; place a stop just below the 20‑day SMA (≈ $1.80).

- Pull‑back entry: If the breakout occurs and the price retests the $1.85 level, consider a limit‑order entry near $1.86‑$1.87, tightening the stop to $1.82. This offers a better risk‑reward if the rally sustains.

In the near term, the announcement should generate a bullish bias, higher volatility, and a clear volume‑driven price move. Traders should monitor the breakout on the daily chart, confirm the volume lift, and size positions accordingly while protecting against a rapid reversal if the buying wave dissipates.