Eastman Kodak Company (KODK) shares rose nearly 220% on Tuesday after the company announced the launch of a KODAKOne image rights management platform and a cryptocurrency called KODAKCoin to enable photographers and agencies to control rights. The blockchain technology, developed in partnership with WENN Digital, will create an encrypted digital ledger of rights ownership for photographers covering both new and archive work.

Many companies have transitioned their business models to focus on cryptocurrencies following the rise of bitcoin, ethereum and other coins. For example, Riot Blockchain, Inc. (RIOT) shares have soared more than 175% over the past three months after the company transitioned from a biotech to a cryptocurrency focus, while Marathon Patent Group, Inc. (MARA) shares rose about 150% over the same time frame after the company acquired a blockchain firm. (See also: What Is Blockchain and Why Should I Care?)

Technical chart showing the performance of Eastman Kodak Company (KODK) stock

From a technical standpoint, Kodak stock broke out sharply higher and briefly hit its 200-day moving average at around $7.62 before closing a bit lower. The relative strength index  (RSI) rose to overbought levels at 85.90, but the moving average convergence divergence  (MACD) crossed above the zero-line in a positive sign of momentum. Shares rose more than 30% in after-hours trading on Tuesday, which could point to a higher open on Wednesday.

Traders should watch for a breakout from the 200-day moving average at $7.62 to trendline resistance at around $8.50 or the psychologically important $10.00 level. With the RSI trading at overbought levels, traders may see some consolidation before a breakout. If the stock moves lower, the next major area of support lies at around $5.00 or R2 support at around $4.10 on the downside. (For more, check out: Kodak to Launch Cryptocurrency: Stock Soars on ICO News.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

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