DatChat Stock News and Forecast: DATS good or bad?

• DatChat (DATS) is one of the retail crowd's new favorite volatile stocks.
• Nasdaq: DATS has been talked about by a number of social media accounts.
• DATS stock performs strongly, but is it a buy or sell?

DatChat (DATS) is a communication software company that operates DatChat Messenger and Private Social Network. Probably the more publicized and talked about feature is the proposed development of a Blockchain-based platform. Blockchain underpins most of the cryptocurrency world, and crypto users would be entirely familiar with how it works and its benefits. Many crypto traders would, therefore, be interested in the application of blockchain by DatChat (DATS). 

DatChat describes itself thus from its own website: "DatChat is a blockchain, cybersecurity and social media company that not only focuses on protecting our privacy on our devices but also protecting our information after we have shared it with others. We believe an individual’s right to privacy should not end the moment they click 'send', and that we all deserve the same right to privacy online that we enjoy in our own living rooms. Our flagship product, the DatChat Messenger & Private Social Network, is a privacy platform and mobile application that provides users the ability to communicate and share with the privacy and protection they deserve."

DatChat (DATS) had its IPO only as recently as August, and it traded around $4 for the first few days. As of Tuesday, the stock has soared to $15.01, so it has been a strong and at times wild ride. It is exactly the type of stock then that the retail trader likes.

DatChat (DATS) key statistics

DATS stock news

Given that DATS is such a small stock with a market cap of only just over $200 million, it is no surprise that it has no analyst coverage. This is a new company with little in the way of financials or analyst coverage to research. The short interest data we have from Refinitiv is contrasted by a short interest of up to 20% being cited on social media.

DATS stock forecast

This one is incredibly volatile, and we would urge extreme caution in trading this. Only use money you can afford to lose. Being such a newly listed stock means there is not much history for us to look over on the chart. We would really urge you to stay away from something like this, but we know many like this sort of wild swing trading, so please use caution, stops or some form of risk management.

The point of control since the IPO is at $8.24, this is the price with the highest amount of volume. The Relative Strength Index (RSI) is beginning to approach overbought levels. It did this back in early October when DATS spiked to $18.50 before coming off sharply. Shares in DATS are up again in the premarket on Wednesday as the company announces an agreement with Barstool Sports for a multi-channel national marketing campaign for DatChat Messenger.