DIH Holding US, Inc. (NASDAQ:DHAI) shares are racing higher Monday amid volatility after the company began trading on the Nasdaq on Friday following its recently-completed business combination with Aurora Technology Acquisition Corp.

What To Know:

DIH also announced a private placement of common stock resulting in gross proceeds of $1.5 million on Friday. DIH Holding said OrbiMed, an existing shareholder in DIH Technologies, was the sole participant in the financing.

The securities purchase agreement for the financing provides for the sale of an aggregate of 150,000 shares of the company's common stock at a purchase price of $10 per share together with warrants to purchase an additional 300,000 shares of DIH common stock with an exercise price of $10.

"We are thrilled to partner with OrbiMed, a long-term private investor in DIH, in advance of our initial trading day as a public company. This financing will provide additional working capital for the expansion of our global commercial strategy and growth initiatives," said Jason Chen, CEO of DIH.

"I am encouraged by the continued support of such a well-respected healthcare investor and look forward to growing our relationship as a public company," Chen added.

DIH shares are moving on heavy trading volume Monday with more than 29.5 million shares already traded in the session, according to data from Benzinga Pro.

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DHAI Stock Prediction 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at DIH Holding US, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For DIH Holding US, the 200-day moving average sits at $1.86, according to Benzinga Pro, which is below the current price of $2.42. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

DHAI Price Action: According to Benzinga Pro, DIH Holding shares are up 70% at $2.22 at the time of publication.

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