Energy Focus Inc. (NASDAQ:EFOI) shares are retreating Monday morning.

The stock fell 12.17% in premarket action. This move follows a massive rally during Friday’s session.

Profit-Taking After Triple-Digit Surge

The decline appears to be driven by profit-taking. On Friday, the stock was halted on a circuit breaker.

It ended that session up a staggering 242.11%. Traders are now locked in gains after the exponential move.

Data Center Progress Fuels Volatility

Friday’s surge began after the energy-efficient lighting company outlined multi-year progress on data center infrastructure work. It specifically highlighted its role in AI-ready facilities.

Details On Project G and Project Y

The company completed Project G, a $0.5 million Uninterruptible Power Supply (UPS) system installation.

It is now advancing Project Y. This project is valued at $6.6 million through 2027. It involves one of Asia’s largest data center developers.

Technical Analysis

Energy Focus is still in a powerful uptrend when viewed through longer-term trend filters, sitting well above its major moving averages and well off the 52-week low of $1.43.

The stock is trading 159.8% above its 20-day simple moving average (SMA) and 170.2% above its 100-day SMA.

The relative strength index (RSI), a momentum gauge, is 94.71. On the bigger picture, the stock is up 254.64% over the past 12 months.

  • Key Resistance: $10
  • Key Support: $5.50

EFOI Stock Price Activity: Energy Focus shares were down 11.71% at $5.73 during premarket trading on Monday, according to Benzinga Pro data.

Photo Courtesy: KeyFame on Shutterstock.com