KOSS Corporation Stock Forecast: KOSS shares forgotten by bulls, stay flat as GME, AMC surge

• KOSS shares fail to ignite as retail targets GME and AMC.
• The headphone maker had usually been one of the chosen retail favourites.
• KOSS stock still targets trendline breakout.

KOSS shares languished on Wednesday as the rest of the meme retail names staged impressive rallies. AMC popped 20%, Gamestop jumped 15% and crypto stocks also surged on Wednesday. KOSS would usually jump on the retail bandwagon but was forgotten about on Wednesday, so will Thursday hold any better results?

KOSS is a headphone maker, based in Wisconsin since 1958. KOSS went public in 1980 and has, for the most part in recent times, been a penny stock (trading below $5 per share). KOSS was trading just over $3 as recently as January 2021. However, that was before the new wave of retail traders discovered it. 

The idea was very clever. Identify stocks with high short interest. Buy shares in these companies, driving the price higher and forcing shorts to cover, creating a self-sustaining move. This strategy created a short squeeze of epic proportions in some names such as AMC and Gamestop in particular.

KOSS was also brought along and rallied up to $127.45 by January 28. Crazy stuff! KOSS is well suited to a squeeze and or price spikes as it has a very small free float of shares, 947K out of 7.6M outstanding shares. The underlying fundamental metrics looked to be incredibly stretched but momentum is driving retail stocks for the most part in 2021 as a new wave of retail money chases the next big thing. Therefore, extreme caution in risk management is recommended as a lot of these names are not buy and hold long-term investments.

KOSS stock forecast

KOSS shares duly slumped from exorbitant highs once the GameStop (GME) fizz settled down with a few more attempts at spiking to $40. Since late March, however, it has been a gradual decline for KOSS shares bottoming out just as Q1 results were released on May 12. KOSS shares ticked just under $16 at $15.58, a heady fall indeed from $120 back in late January.

KOSS formed a neat trend channel but saw some activity and a spike in volume as it broke out on Tuesday. KOSS shares rose nearly 23% to break out of the channel identified and in the process confirm a new small uptrend. What is most interesting about KOSS bottoming out is that the shares bottomed out at the previous low from March 25, at $15.85. Below, there is another strong support at $11.80.

The first target for KOSS to achieve is $26.26. A breakout above this latter level will extend targets to $33.80 and $40.48. The $15.85 mark looks to be the more important support to hold to protect the nascent bullish trend as breaking this would create a fresh new low.