This Stock Gained 40% In the Midst Of The Coronavirus Selloff

In the times when the S&P 500, the U.S. benchmark index, has corrected 33% in just four weeks, shares of Citrix (NASDAQ:CTXS) hit record highs after surging 40% in three weeks. The networking software giant is also one of the hottest topics in the United States now.

The stock that everyone is talking about

Citrix came under the media spotlight after it was revealed that the Republican Senator Kelly Loeffler sold off seven figures’ worth of stock holdings just days before the huge market selloff started.

Loeffler is accused of using sensitive information obtained from the Senate Health Committee, which hosted a private hearing from administration officials for senators on the COVID-19, to exit her positions from multiple stocks.

Moreover, Loeffler then decided to purchase between $100,000 and $250,000 of Citrix shares after she was likely to have found out that companies that produce teleworking softwares, such as Citrix, are likely to benefit from the upcoming crisis.

Loeffler denies the allegations.

She is the wealthiest member of Congress, as her husband is the chairman and CEO of the New York Stock Exchange (NYSE). Their fortune is estimated at around $500 million. She is known to the crypto world as the former CEO of Bakkt, a crypto derivatives provider owned by the NYSE.

Loeffler left her position at Bakkt in December to become a junior Republican Senator for Georgia.

Technical analysis: Bulls fail to hold onto early gains

The Citrix stock price ignored the bloodbath elsewhere, as it has gained around 40% in just three weeks. Given the nature of the software it produces, Citrix was always well-positioned to gain during the stay-at-home work mode.

The price action has been trading higher for days before adding around 10% on the Loeffler news. As a result, the Citrix stock printed its record high of $141.01 yesterday, during the time when other tech stocks were hitting multi-year lows.

As seen in the chart, the price action stopped at the ascending trend line that connects the higher highs. Therefore, the long-term uptrend is still intact. This trend line will continue to provide resistance for the bulls.

On the downside, the bulls are still supported by the 100-WMA near the $105 handle.

Summary

Shares of Citrix hit record levels yesterday due to the increased demand for teleworking softwares the company produces. Moreover, it seems that Senator Loeffler used information from private committee sessions to invest in the company, which brought the company under the media spotlight.