Redwire Corp (NYSE:RDW) shares are trading lower on Thursday. This move follows a massive 15% surge on Wednesday.

The Nasdaq is down 0.32% while the S&P 500 has gained 0.09%.

Profit Taking After Massive Rally

The Thursday decline appears to be a standard price correction. Investors are likely locking in gains from Wednesday's momentum.

On Wednesday, the stock hit a high of $11.27 behind heavy buying pressure.

The Commanders Marketing Partnership

The volatility stems from a new multi-year deal. Redwire is now the drone technology partner of the Washington Commanders, an American football team.

CEO Peter Cannito views the deal as a cultural fit. Cannito, a U.S. Marine Corps veteran, said the partnership reflects a "shared ethos and culture centered on cultivating appreciation for U.S. military personnel."

Redwire Stock Short Interest Report

Short interest in Redwire climbed during the latest reporting cycle. Total shares held short rose from 27.68 million to 29.48 million.

This surge means 25.99% of the company's float is now sold short.

Technical Analysis

Redwire is still sitting in the middle of its 52-week range of $4.87 to $22.25. The stock is trading 13% above its 20-day simple moving average (SMA) and 19.2% above its 100-day SMA.

The moving average stack is mixed: the 20-day SMA is above the 50-day SMA (bullish for the near-term trend), but the death cross from August (50-day SMA below the 200-day SMA) still hangs over the longer-term backdrop.

  • Key Resistance: $12
  • Key Support: $10

RDW Price Action: Redwire shares were down 11.06% at $10.61 at the time of publication on Thursday, according to Benzinga Pro data.

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