Netlist, Inc. (OTC:NLST) stock fell on Wednesday after the U.S. Court of Appeals for the Federal Circuit affirmed an administrative ruling that invalidated its memory patent claims.
On Wednesday, the appeals court upheld a Patent Trial and Appeal Board (PTAB) final written decision that determined all challenged claims of Netlist’s U.S. Patent No. 10,949,339 are unpatentable as obvious.
The legal challenge involves Micron Technology, Inc. (NASDAQ:MU) as the sole remaining appellee after Samsung Electronics Co., settled with Netlist and withdrew from the appeal.
Technical Analysis
NLST is trading about 24% above its 20-day SMA of $5.35, while remaining well above its 50-day SMA ($3.75) and 200-day SMA ($2.12), keeping the stock’s longer-term trend pointed higher. The 50-day SMA is also above the 200-day SMA, a bullish technical configuration known as a Golden Cross.
Momentum is elevated: The 14-day RSI is in the high-60s to low-70s, putting the stock near or around the traditional 70 “overbought” threshold. That suggests the recent move may be vulnerable to a pullback, even if the broader trend remains bullish. RSI measures the strength and speed of recent price moves; readings above 70 are commonly viewed as a sign that a stock has become overbought.
Key resistance: $7 — NLST’s 52-week high and the clearest overhead level if the rally continues.
Key support: $5.35 — The 20-day SMA, which traders may watch as a potential near-term support level.
Zooming out, the Technology sector is up 2.95% over the past 30 days but down 5.12% over the past 90 days, which points to a choppy intermediate trend. If XLK stays heavy, NLST may need to keep proving it can hold above trend levels like the 50-day area ($3.75) rather than relying on broad sector tailwinds.
NLST Stock Price Activity: Netlist shares were down at $5.62 at the time of publication on Wednesday, according to Benzinga Pro data.
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