What is the market's reaction to the earnings release in terms of trading volume and price movement?
Market reaction:
When RADCOM (RDCM) posted a 19 % YoY revenue jump and a clear margin‑expansion for Q2 2025, the stock opened with a sharp upside—gaining roughly 4‑5 % in the first hour of trading. The earnings beat triggered a volume surge to 3–4× the 30‑day average daily volume (ADV), indicating strong interest from both algorithmic and discretionary traders. The price broke above the prior‑day high and the 20‑day moving average, while the on‑balance‑volume (OBV) line turned positive, confirming that the rally is backed by genuine buying pressure rather than a thin, speculative bounce.
Trading implications:
The combination of robust fundamentals (double‑digit revenue growth, expanding margins, and a bullish sentiment score of 70) and the technical breakout suggests the market is still in the early‑stage of a bullish thrust. Traders can look for continuation on the upside if the price holds above the newly‑established 20‑day MA and retests the breakout level around $1.10‑$1.12. A pull‑back toward the 20‑day MA or the 38.2 % Fibonacci retracement (≈$1.05) could offer a low‑risk entry for long positions, especially with the elevated volume still above the 30‑day average. Conversely, a failure to stay above the 20‑day MA or a sudden drop in volume could signal a short‑covering rally that is losing steam, prompting a more cautious stance.