Net Element, Inc. (NETE) shares soared more than 70% after CNBC host Jon Najarian joined its board of directors. The Investitute co-founder is a regular on CNBC's "Halftime Report" and "Fast Money." The arrival of Najarian to the board comes shortly after the company terminated its plans to work with Bunker Capital to develop blockchain technologies, prompting the return of 19,000 common shares that Net Element contributed as a prepayment.

Net Element initially announced its blockchain initiatives on Dec. 20, 2017, which sent shares more than 300% higher. Since then, the stock has seen a slow and steady decline as the initial enthusiasm surrounding the announcement has worn off. Thursday's announcement that Najarian has joined the board has reignited hopes that the company will make progress in the blockchain business. (See also: Passwords Are Obsolete, Get With the Blockchain.)

Technical chart showing the performance of Net Element, Inc. (NETE) stock

From a technical standpoint, the stock broke out from trendline resistance earlier this week before breaking out from its 50-day moving average during Thursday's session. The relative strength index (RSI) moved to overbought levels with a reading of 73.53, while the moving average convergence divergence (MACD) started to show some signs of life. These indicators suggest that the stock will see some near-term consolidation but that trends could change.

(If you are interested in learning more about supplemental technical indicators like the RSI, check out Chapter 4 of the Technical Analysis course on the Investopedia Academy)

Traders should watch for some consolidation above the 50-day moving average or R2 support levels at $9.49 over the coming sessions. That said, the stock's rally could continue into Friday after it closed near the high for the day. A breakdown from the 50-day moving average could lead to a move down to the pivot point at $6.60 or a move down to retest trendline support at around $4.90, although this scenario appears less likely at the moment. 

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