Is It Too Late To Buy Romeo Power's Stock After 60% Surge?

Romeo Power Inc. (NYSE: RMO) shares surged 59.6% amid an agreement to become a battery supplier for PACCAR Inc (NASDAQ: PCAR), a leader in zero-emission commercial vehicles.

The stock closed Tuesday at $12.80 per share.

Romeo Power Daily Chart Analysis: The daily chart above shows the stock trading in a channel.

The stock is trading in a channel between the price levels of $10 and $15. The potential area of support comes in near $10; Because the stock previously held this area as support, it may again in the future.

The potential resistance near the $15 level comes from an area on the chart that was previously holding as support before it broke below and was unable to re-break above.

The stock is trading below the 200-day moving average (blue), hinting sentiment of the stock is bearish. Tuesday's battery supplier news may bring about a more bullish sentiment.

What's Next: Bullish technical traders would like to see the stock move up to the resistance level and break above. If the stock were able to consolidate above this area for a time, it has a chance to move up further.

Bearish technical traders would like to see the stock below the potential area of support and consolidate before the stock moves down further.

The large spike in volume following the news is interesting for traders to take a look at. The stock may see more volatile moves if the stock maintains a high volume similar to Tuesday.

Check out Benzinga's December interview with the Romeo Power CEO: