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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.


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Results for ONVO
Stock News Headlines
2 Sep 14 18:39:44
$ONVO: Long On Organovo Artificial Tissues http://t.co/Uv1HdBx0ff http://t.co/7a7YwWIgAg
Market Headlines
2 Sep 14 17:40:11
$ONVO: ORGANOVO HOLDINGS, INC. Files SEC form 10-Q, Quarterly Report http://t.co/qp6tjbByeH http://t.co/m3K0zcG58P
Jeet
2 Sep 14 17:05:10
Need $mnkd and $onvo to pick up the pace investments still increasing thanks to 75% of my investment being in $gild and 25% in $aapl
Jeet
2 Sep 14 17:00:22
Bought some $born instead of $clsn after looking at the financials and long term growth opportunity. Long $gild $onvo $mnkd $born
Stock Rocket
2 Sep 14 13:24:15
$DGLY is up 940.2% in 3 weeks! Our new penny stock alerts are coming soon: http://t.co/G4xan5kQD5 $ONVO $BTG $LNG
ThePennyCommand.com
2 Sep 14 12:29:17
http://t.co/rCFETx8Oyc rayank: Now for my next act:$ SNTA - $ONVO. LOL: rayank http://t.co/DF6XXOXYvX http://t.co/rCFETx8Oyc
Future Tech Investor
2 Sep 14 11:51:53
$LOCK breakin out nicely. ID security play $FB $GE $F $TWTR $GPRO $CMG $DGLY $MU $AA $UAL $JRJC $MOBI $GTAT $DDD $SSYS $ONVO $SPLS $TSLA
Companies in News
2 Sep 14 11:39:31
$ONVO: Organovo Holdings (ONVO) Showing Signs Of A Dead Cat Bounce Today http://t.co/7VWIG026rt http://t.co/4DWJhNkoU4
Future Tech Investor
2 Sep 14 10:43:00
ID theft plays like $LOCK are gettin hot $FB $GE $F $TWTR $GPRO $CMG $DGLY $MU $AA $UAL $JRJC $MOBI $GTAT $DDD $SSYS $ONVO $GILD $SPLS $TSLA
Stockchartz
2 Sep 14 07:56:01
Big_Money_Upward: $ONVO 7.79 --3D printing of humans could be next!!!!!!!!! http://t.co/21su0kdZDz
Stockchartz
2 Sep 14 07:55:58
Big_Money_Upward: $ONVO 7.79 --human cloning is the future im betting!!!!!!!!! http://t.co/TGiyvckwMd
Stockchartz
2 Sep 14 07:55:54
Big_Money_Upward: $ONVO 7.79 --getting hotter now folks!!!!!!!!! http://t.co/WsPBqNwwLD
Stockchartz
2 Sep 14 07:55:50
Big_Money_Upward: $ONVO 7.79 --bye bye red, hello green!!!!!!!!! http://t.co/pAQDSAWFbE
Business News Now
2 Sep 14 07:39:13
$ONVO: Organovo Holdings (ONVO) Showing Signs Of A Dead Cat Bounce Today http://t.co/y0xscxLlBI http://t.co/2aIPsJio8a
Future Tech Investor
2 Sep 14 06:56:17
Looks like $KNDI funders arent going to let it drop below the buy in price $TSLA $TTM $F $GM $JD $FB $YY $AAPL $AMZN $FSLR $DDD $ONVO $PLUG
Big Money
2 Sep 14 06:45:56
$ONVO 60-minute chart perfect. moves too slow to be looking at 1min chart.=, ect.
TweedyBird$
1 Sep 14 19:52:12
RT @iHangout2: http://t.co/vVojvVrNNL chartguy89: Stock Charts: VIIC Stock Chart $VIIC $SKYF $ONVO $DGLY http://t.co/GgKgVVFo0N
Stockaholics
1 Sep 14 19:48:22
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $STNG $ONVO
Coastal Returns
1 Sep 14 18:10:42
Hope you enjoyed the LOBG weekend, get ready tomorrow to buy up $MU, $AZPN, $ONVO early
Stockaholics
1 Sep 14 16:29:16
$IWEB closed up 100% today, on more than 290 MILLION shares traded! Huge News: http://t.co/ucQcnpafDY $ONVO $BTG $LNG
iHangout
1 Sep 14 15:02:13
http://t.co/jYcEVtZYAh Shady: $ONVO Organovo Holdings, Inc.: Has anyone speculated on the revenue potentials http://t.co/DNJqEok7us
GoldenHounds
1 Sep 14 14:15:38
RT @IHPosts: danrocks: $VOIS Hitting Buzz $EPGL $ONVO $LVVV $LVVV $DRIO http://t.co/DEZwBjoovY
GoldenHounds
1 Sep 14 13:30:12
RT @IHPosts2: danrocks: $VOIS Hitting Buzz $EPGL $ONVO $LVVV $LVVV $DRIO http://t.co/w9KurRb4wo
GoldenHounds
1 Sep 14 13:07:22
RT @danrocks4: $VOIS Hitting Buzz $EPGL $ONVO $LVVV $LVVV $DRIO http://t.co/fzRxe7QlWU
Stock Updates
1 Sep 14 11:38:59
$ONVO: Organovo Highlights Liver Toxicology Achievement, Reports Q1 Fiscal 2015 Results http://t.co/Lwf9KUMT03 http://t.co/3L7Uzexs3E
Investors Hangout
1 Sep 14 11:29:23
jim50: $ONVO Low Date=Aug-29-2014 Open=7.67 High=7.84 http://t.co/nBzLFxqRt9
Investors Hangout
1 Sep 14 11:29:23
jim50: $ONVO Low Date=Aug-29-2014 Open=7.67 High=7.84 http://t.co/nY5lyc6sZJ
Investors Hangout
1 Sep 14 11:27:12
danrocks: $VOIS Hitting Buzz $EPGL $ONVO $LVVV $LVVV $DRIO http://t.co/DEZwBjoovY
Investors Hangout
1 Sep 14 11:27:12
danrocks: $VOIS Hitting Buzz $EPGL $ONVO $LVVV $LVVV $DRIO http://t.co/w9KurRb4wo
jim50
1 Sep 14 11:00:14
$ONVO Low Date=Aug-29-2014 Open=7.67 High=7.84 Low=7.54 Close=7.78 Volume=668700 http://t.co/3aqgFD5qJY
danrocks
1 Sep 14 10:57:51
$VOIS Hitting Buzz $EPGL $ONVO $LVVV $LVVV $DRIO http://t.co/fzRxe7QlWU
Market Headlines
1 Sep 14 10:39:10
$ONVO: Can Organovo Holdings Inc. Keep It Up? http://t.co/ghy2qkfq99 http://t.co/AF0223ZByG
Jake13
1 Sep 14 10:33:17
$LVVV Buy? Click here to find out if $LVVV is a buy hold or sell. Watching these stocks. $HEMP $ONVO $INCC $CJ http://t.co/EyIM1RuapX
Investors Hangout
1 Sep 14 10:23:22
Emylers: $ONVO Up to date company activities and other http://t.co/n1HSXKFSgW
Investors Hangout
1 Sep 14 10:23:22
Emylers: $ONVO Up to date company activities and other http://t.co/E6pbUS7YAL
Emylers
1 Sep 14 10:11:13
$ONVO Up to date company activities and other important information about $ONVO http://t.co/SrXVa9dP8n
Extreme Stocks
1 Sep 14 10:08:54
DennyT: ONVO Research Reports $ONVO $MINE $ORFG $NBRI http://t.co/whnPA4i5W6
Investors Hangout
1 Sep 14 09:53:18
DennyT: ONVO Research Reports $ONVO $MINE $ORFG $NBRI http://t.co/80sHcrZQje
Investors Hangout
1 Sep 14 09:53:18
DennyT: ONVO Research Reports $ONVO $MINE $ORFG $NBRI http://t.co/gk2noEPdy3
OTPicks.com
1 Sep 14 09:50:37
http://t.co/hjgLwIcNgz DennyT: ONVO Research Reports $ONVO $MINE $ORFG $NBRI: DennyT http://t.co/1vKfaL22OV http://t.co/hjgLwIcNgz
OTPicks.com
1 Sep 14 09:50:34
http://t.co/QkCFZ8H3V8 DennyT: ONVO Research Reports $ONVO $MINE $ORFG $NBRI: DennyT http://t.co/5rlhCCNyLU http://t.co/QkCFZ8H3V8
lookn4wins
1 Sep 14 09:39:27
$PFNO Candlesticks $PFNO Most recent stock chart and technical analysis. $MRIB $UNGS $LVVV $CTIX $GNCP $ONVO h http://t.co/I9wjFg1Eel
Tony Touch
1 Sep 14 09:22:05
$ONVO ok, lets try this again http://t.co/fkWWzta0nM
Bitcoin
31 Aug 14 20:44:14
RT @Patrick97398715: #VOLUMESHIFTUP $GML $NVS $COO $ONE $ONVO $SKBI $MUX $REGN $SNY $EE #quantheta
Bitcoin
31 Aug 14 20:44:10
RT @Patrick97398715: #VOLUMESHIFTUP $GML $NVS $COO $SKBI $MUX $ONE $ONVO $REGN $SNY $KBH #quantheta
Patrick
31 Aug 14 18:00:04
#VOLUMESHIFTUP $GML $NVS $COO $SKBI $MUX $ONE $ONVO $REGN $SNY $KBH #quantheta
Patrick
31 Aug 14 17:00:04
#VOLUMESHIFTUP $GML $NVS $COO $ONE $ONVO $SKBI $MUX $REGN $SNY $EE #quantheta
On Time Picks
31 Aug 14 13:16:21
Big_Money_Upward: $ONVO #1: Big_Money_Upward http://t.co/ve9JOjpZGc
The Trading Ninja
31 Aug 14 13:14:51
StrikeForce Adds Logical Source, Inc. as a New Distributor of Its Products - $SFOR $ITVI $ONVO $NPHC $BBRY $TWTR http://t.co/Ag5Wtj7n53
Financial News
31 Aug 14 12:39:00
$ONVO: Organovo Highlights Liver Toxicology Achievement, Reports Q1 Fiscal 2015 Results http://t.co/LKpPM32ndW http://t.co/dGDgEaLeNj
				
				
By  +Follow March 27, 2014 5:35AM
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