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Medical 3D-Printing Company Organovo (ONVO) Plunges Past Support, 200-Day SMA

By  +Follow March 27, 2014 5:35AM
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Shares of small-cap 3D-printing company Organovo (ONVO) plunged in early trading on Thursday, losing over 10 percent on heavy volume before recovering to losses close to 9 percent. The company, which makes 3D printers capable of replicating human tissue for use in laboratory settings, didn’t have a clear news item that would appear to be driving selling. However, the stock has been experiencing a general pullback from the 52-week high it reached on November 18 last year.

Shares opened down about 1.5 percent at $8 and plunged to close to $7.50 before recovering to hover around $7.75 for much of the morning. The major losses didn’t begin to mount until just before 11:30 am ET, at which point volume increased heavily and shares fell sharply, hitting a low of $7.16 apiece and mostly trading below $7.25 a share.

The timing and size of the move would seem to indicate a specific piece of news sparking a sell-off, but there weren’t any particular actionable news items to speak of. The company had presented at the 2nd Annual Regen Med Investor Day on Wednesday, but it’s unclear that any of the content of that presentation could be at the root of the day’s move.

Technical Factors, Chart May be Culprit for ONVO Sell-off

A close look at the chart patterns, though, may indicate some technical factors that could have helped motivate the run. Since a heavy sell-off in mid-November when the rumored buyout that appeared to be spurring a huge spike failed to materialize, the stock has been pulling back significantly, falling over 40 percent from its 52-week high to the closing bell yesterday. However, throughout this pullback, shares appeared to have strong support at $8 since crossing that level in early November.

Since reaching its 52-week high, a triangle pattern appeared to be forming as resistance kept falling and a second, rising support level approached it. As such, the more-recent sell-off that started on March 18 and had shares down over 7 percent through yesterday appeared to be a downward breakout from that pattern.

However, today’s open price began flirting with that long-term support level at $8 and dipped below it, the first time shares had hit that level in almost five months. After trading below $8 for much of the morning, it’s possible that traders started to get the sense that the important barrier wasn’t going to hold and a bounce back wasn’t forthcoming. A sentiment that was probably reinforced when the stock crossed its 200-day SMA from above at about $7.50 a share.

More Correction...or a Buying Opportunity?

However, the potential for a bounce-back in the next few days also appears strong based on the technical profile of the stock and given that the sell-off doesn’t appear to be motivated by the specifics of the company but rather a general pullback from an artificial high created by buyout rumors.

The breaking of the support level at $8 may not hold for long, and bargain buyers may see it as a chance to get in on a company with a very hot technology with a potentially bright future. 3D printing is an industry that very likely has much to look forward to, and Organovo is one of the more unique plays in that segment.

That sentiment is likely to be bolstered by anyone considering the 14-day RSI and 14-day stochastic RSI for the stock. Today’s sell-off has pushed the 14-day RSI below 30.00, a level that’s traditionally considered the barrier for oversold territory. And the 14-day stochastic RSI has been below 0.20, also traditionally the barrier for a stock being considered oversold, since yesterday.

Finally, the timing of the move could be important. Monday marks the end of Q1 2014, what could be an important barrier for some on the buy-side constrained by the need to keep their quarter-end balance sheets looking clean. The markets have seen a relative volume halt in the approach to the end of the month, potentially fueled by fund managers sitting in a holding pattern until the calendar turns over to April. If any of these actors are waiting for the start of Q2 before acting on any value plays, it could bode well for Organovo investors.

Of course, it’s also just as possible that its current trading level is still correcting for the buyout rumors that drove it to previous highs and the stock will continue this decline, perhaps even picking up speed having now broken its previous support level. This would seem even more possible if one buys into the idea that health care stocks are currently in a bubble after a wild 2013 that saw biotechs making major gains.

Given the young segment and the relatively small size of the company, any predictions about future price movements likely aren’t of much value. And only time will tell if the bulls or the bears win out on Organovo in the long run.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for ONVO
SmallCaps
29 Aug 15 01:50:56
http://t.co/JqX1kyQH6V SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
Stock Rocket
29 Aug 15 01:36:18
Our Penny Stock Alerts Gained 550% In Less Than 6 Weeks! We Have A HUGE New Pick In The Works: http://t.co/wNx8NkJOZ4 $STNG $ONVO
PennyStock Zone
29 Aug 15 01:36:09
http://t.co/iBFjWC0v3b <--- Amazing subscriber to Super_Trades - check out his profit chart!! $ZNGA $SIRI $S $ONVO $LQMT $KWK $CNET
WatchTheFunds
28 Aug 15 19:31:01
$ONVO Institutional ownership up 12.04% Q/Q, with 2,493,370 net purchase http://t.co/wBctdJeyOk http://t.co/qTSoseRFYP
Stock Rocket
28 Aug 15 18:33:28
Our Penny Stock Alerts Gained 550% In Less Than 6 Weeks! We Have A HUGE New Pick In The Works: http://t.co/wNx8NkJOZ4 $ONVO $BTG $LNG
Stockaholics
28 Aug 15 18:03:08
Platinum Subscribers Saw Our Stock Picks Gain 4,000% In 10 Months! See Our New Pick: http://t.co/g5i9WatmiT $ONVO $BTG $LNG
Stock Dawgzz
28 Aug 15 17:56:12
Our Platinum Members Saw Stock Picks Gin Over 550% In 5 Weeks! See Our Exclusive New Pick: http://t.co/V9CRygFGCi $ONVO $BTG $LNG
StockenheimerSchmidt
28 Aug 15 17:52:24
Our Penny Stock Picks Have Been Seeing MASSIVE gains! We Have A Big New Pick Coming: http://t.co/kfHwjHzHOI $ONVO $BTG $LNG
Stock_Tracker
28 Aug 15 15:42:34
ONVO Organovo Holdings, Inc. EOD Data http://t.co/uWMy1OJL1e $ONVO $UPRO $JNK $TAN #ONVO #stocks #nasdaq
IH News Desk
28 Aug 15 15:37:33
FXE Currency Shares Euro Trust P/E Ratio http://t.co/RdvYW4vo7C $FXE $SLV $ONVO $XLF #FXE #tradeideas #invest
emsnlusdad
28 Aug 15 13:07:11
$ONVO continued EOD action. Getting ready to pop. Good weekend all.
SmallCaps
28 Aug 15 08:51:16
http://t.co/JqX1kyQH6V SuperTrades student on track to $1 million profit 1st year trading! $ADXS $RTRX $ONVO $ECIG $FB $TWTR $LIVE
Alex Gerela
28 Aug 15 08:44:05
$ONVO voted #2 https://t.co/75JqaSxg0g
danrocks
28 Aug 15 07:43:20
Right now ONVO is number 33 for the largest percentage gain out of 250 stocks. $ONVO ONVO is up +19.63% in the http://t.co/seZzGzYBN5
Max'sPain
28 Aug 15 06:57:40
@JasonBondPicks Look at $ONVO .. wants to get back over $3
WatchTheFunds
28 Aug 15 06:57:02
$ONVO Institutional ownership up 12.04% Q/Q, with 2,493,370 net purchase http://t.co/wBctdJeyOk http://t.co/gmpax2LFUf
Wu Weed
28 Aug 15 06:35:58
nice open $onvo
jomarie
28 Aug 15 06:21:00
$ONVO #Organovo revenue grows as a result of #3Dprinted #exVive3D liver tissue => http://t.co/kFY4MQHEbk...
FonsieTrader
28 Aug 15 05:13:40
Trade Ideas for Friday, August 28 $BTU $BBRY $ONVO $OHRP $KITE $SQM http://t.co/LPTzZ1PIU2 Also on watch $WBAI $SUNE $GPRO $NOG $BTE $OAS
Mr.3Deeprint
28 Aug 15 04:08:28
$ONVO READY TO GO UP!
Domenico Traverso
28 Aug 15 03:11:37
Has $ONVO reached the bottom? #stocks #organovo http://t.co/SElJ7FwWTf
PennyStock Zone
28 Aug 15 01:18:05
[Free Video] http://t.co/NZsuLWAAjQ <-- The Dirty Little Secrets of the Pennystock World! $ONVO $GBX $INFA $CLVS $JPM #stocks
Stock Rocket
27 Aug 15 21:01:26
Our Penny Stock Alerts Gained 550% In Less Than 6 Weeks! We Have A HUGE New Pick In The Works: http://t.co/wNx8NkJOZ4 $STNG $ONVO
Stockaholics
27 Aug 15 20:52:08
Platinum Subscribers Saw Our Stock Picks Gain 4,000% In 10 Months! See Our New Pick: http://t.co/g5i9WatmiT $STNG $ONVO
Stock Dawgzz
27 Aug 15 20:46:56
Our Platinum Members Saw Stock Picks Gin Over 550% In 5 Weeks! See Our Exclusive New Pick: http://t.co/V9CRygFGCi $STNG $ONVO
StockenheimerSchmidt
27 Aug 15 20:45:14
Our Penny Stock Picks Have Been Seeing MASSIVE gains! We Have A Big New Pick Coming: http://t.co/kfHwjHzHOI $STNG $ONVO
Penny Stockington
27 Aug 15 20:41:48
Our Stock Alert On $GEQU Nearly QUADRUPLED In 2 Weeks! Special Update: http://t.co/EYbtsRpShV $STNG $ONVO
David Adler
27 Aug 15 20:30:50
@hecht_dan I'm glad I sold a few losers like $pgn $nadl $onvo
emsnlusdad
27 Aug 15 15:15:54
$ONVO what's with EOD volume?
Clair Voight
27 Aug 15 15:05:13
$ONVO Why Organovo Holdings Inc. Stock Tanked in July http://t.co/MAzQrBx39x
Samuel Brown
27 Aug 15 15:05:08
$ONVO Large Inflow of Money Witnessed in Organovo Holdings, Inc. http://t.co/ZNBPl2Cbxp
WatchTheFunds
27 Aug 15 14:48:03
$ONVO Institutional ownership up 12.04% Q/Q, with 2,493,370 net purchase http://t.co/wBctdJeyOk http://t.co/7zTsCnGWnR
John L. Bair
27 Aug 15 14:46:37
"@FonsieTrader Trade Ideas for Friday, August 28 $BTU $BBRY $ONVO $OHRP $KITE $SQM http://t.co/MaJHferMMl" GR8!
FonsieTrader
27 Aug 15 14:46:19
Trade Ideas for Friday, August 28 $BTU $BBRY $ONVO $OHRP $KITE $SQM http://t.co/v55vpbHYDU #stocks #trading #daytrading
GreenCulturePodcast
27 Aug 15 13:00:15
$ONVO strong into the close. looking to rally more tomorrow here. glad i at 2.08 and again at 1.95
Wu Weed
27 Aug 15 12:57:23
$onvo eod +++ wu tang
Tonia Shaw
27 Aug 15 10:02:11
My winning biotech's today $AMDA, $ONVO, $RXII, $SYN. My other winners are $CCJ & $SHLD.
Sweet Platform
27 Aug 15 09:34:44
ONVO Top news - Aug 27th, 2015 $ONVO http://t.co/U2XZdUQGL4
Jon Vince
27 Aug 15 08:13:39
RT @WuTangCannabis: $onvo moving
Wu Weed
27 Aug 15 08:03:03
$onvo moving
danrocks
27 Aug 15 07:56:52
Right now ONVO is number 47 for the largest percentage gain out of 250 stocks. $ONVO ONVO is up +13.55% in the http://t.co/3VPCWDuG3B
Large Void Bot
27 Aug 15 07:47:12
10:47 Pops: $ONVO +3.9%
Large Void Bot
27 Aug 15 07:40:13
10:40 Drops: $AMSC -5.2%, $ONVO -4.1%
WatchTheFunds
27 Aug 15 07:24:04
$ONVO Institutional ownership up 12.04% Q/Q, with 2,493,370 net purchase http://t.co/wBctdJeyOk http://t.co/vQA1CRKCyC
Wu Weed
27 Aug 15 06:38:43
$onvo nice open
Stockaholics
27 Aug 15 06:24:28
Platinum Subscribers Saw Our Stock Picks Gain 4,000% In 10 Months! See Our New Pick: http://t.co/g5i9WatmiT $ONVO $BTG $LNG
Stock Rocket
27 Aug 15 06:23:57
Our Penny Stock Alerts Gained 550% In Less Than 6 Weeks! We Have A HUGE New Pick In The Works: http://t.co/wNx8NkJOZ4 $ONVO $BTG $LNG
Stock Dawgzz
27 Aug 15 06:19:44
Our Platinum Members Saw Stock Picks Gin Over 550% In 5 Weeks! See Our Exclusive New Pick: http://t.co/V9CRygFGCi $ONVO $BTG $LNG
StockenheimerSchmidt
27 Aug 15 06:18:49
Our Penny Stock Picks Have Been Seeing MASSIVE gains! We Have A Big New Pick Coming: http://t.co/kfHwjHzHOI $ONVO $BTG $LNG
Penny Stockington
27 Aug 15 06:14:46
Our Stock Alert On $GEQU Nearly QUADRUPLED In 2 Weeks! Special Update: http://t.co/EYbtsRpShV $ONVO $BTG $LNG
				
				
By  +Follow March 27, 2014 5:35AM
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