Is it too late to buy Renren stock on Monday?

Renren Inc. (NYSE: RENN) stock closed soared higher on Friday and hit a new 52-week high of $25.57. Renren's payment of at least $300 million to resolve a shareholder lawsuit in which corporate executives were accused of usurping the firm's billion-dollar investment portfolio has piqued the interest of investors.

On Monday, the stock was trading near the $24.50 level, implying shares are not far removed from their peak.

Renren stock technical analysis

On Friday Ren closed $7.38 higher than Thursday’s closing price- a 44% increase in a single day, but will Ren be able to sustain this huge spike? Let's take a look at the chart and see if we can find some clues.

Having a closer look at the daily chart of Ren we can see what the stock is indicating for the future.

Conclusion

With very few levels of supports, long entries are extremely risky in Ren, moreover, a pullback should be expected very soon. The pullback could cause new buying opportunities to appear but one must be very cautious and avoid large quantities as Ren is an extremely volatile stock.