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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
Stock Rocket
1 Jul 15 08:27:44
Our Penny Stock Newsletter Alerts Gained 200% In 2 Weeks! Get Our Next Pick Early: http://t.co/4eX1MHBloV $ONVO $BTG $LNG
wsnewspublishers
1 Jul 15 07:41:56
Active Stocks on Trader’s Radar: http://t.co/cWaEE5CseJ $PTEN $QEP $ONVO $AER
myrollingstocks
1 Jul 15 07:40:29
Who is buying $ONVO http://t.co/YqLnJ17VCs
Myrollingstocks
1 Jul 15 07:40:20
Who is buying $ONVO http://t.co/UoXvypXZJu
Retsialg
1 Jul 15 07:40:17
Who is buying $ONVO http://t.co/q4o7G6D82P
WatchTheFunds
1 Jul 15 07:22:02
$ONVO Institutional ownership up 13.43% Q/Q, with 2,493,370 net purchase http://t.co/wBctdJeyOk http://t.co/o0tWhdKype
Haj
1 Jul 15 07:15:45
"@Trader_Mood: $ONVO long 4.26" Added 3.80
US_proptrader
1 Jul 15 07:06:42
$CRC $GDDY $JUNO $KITE $OFG $ONVO $RCAP $SCTY $SGYP autocharts @ http://t.co/cLiki3R0GR
GoldenCenser
1 Jul 15 06:58:32
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Penny Stock Secret
1 Jul 15 06:48:52
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Penny Stock Secret
1 Jul 15 06:47:31
Yesterday We Made $54,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $ONVO $BTG $LNG
Jon Vince
1 Jul 15 06:35:40
Posted alert & add on $BIOC last wk at $2.53 and an add/alert on $ONVO on Monday at 3.71. Said $JUNO oversold ystrday at $53.35
Jon Vince
1 Jul 15 06:18:56
$BIOC (20%), $DWTI, $JUNO, $NFLX, $ONVO up nicely in pre
deafdaytrader
1 Jul 15 05:40:30
$ONVO nice bottom
WKRB News
1 Jul 15 05:01:19
Organovo Holdings Earns Overweight Rating from Analysts at Piper Jaffray $ONVO http://t.co/0o4evNz64R
The Legacy News
1 Jul 15 04:57:45
Organovo Holdings Research Coverage Started at Jefferies Group $ONVO http://t.co/KHBrzSA2XV
Breaking News Now
1 Jul 15 04:49:05
$ONVO: Organovo Holdings Research Coverage Started at Jefferies Group ...: http://t.co/vUiULGqbMg
The Legacy News
1 Jul 15 04:16:24
Piper Jaffray Begins Coverage on Organovo Holdings $ONVO http://t.co/saVETmxNt9
The Legacy News
1 Jul 15 04:16:23
Organovo Holdings Earns Buy Rating from Analysts at Jefferies Group $ONVO http://t.co/Qg2qDvzjH6
leahanne
1 Jul 15 03:48:40
TRP.TO TransCanada PipeLines Ltd. Financials http://t.co/rFnJEq4vnV $TRP.TO $MBLY $ONVO $PBY #TRP.TO #stock #invest
Jake13
1 Jul 15 03:48:27
TPAC Trans-Pacific Aerospace Co. Inc. Summary http://t.co/GAsVwnRfia $TPAC $AMBSD $ABG $ONVO #TPAC #invest #share
lookn4wins
1 Jul 15 03:48:20
THCZ Totally Hemp Crazy Inc. Ask Size http://t.co/s7Bekb9bRE $THCZ $AMCX $ONVO $PNK #THCZ #stockmarket #invest
DennyT
1 Jul 15 03:48:12
TQQQ ProShares UltraPro QQQ Dividend http://t.co/shGFZHRiH4 $TQQQ $ONVO $GEQU $T #TQQQ #investing #investing
jim50
1 Jul 15 03:45:21
ONVO Organovo Holdings, Inc. Investor Opinions http://t.co/bJOQ6sfG8m $ONVO $WMT $DIA $TPAC #ONVO #stocks #nasdaq
PolgarStocks
1 Jul 15 03:45:11
ONVO Organovo Holdings, Inc. 52Wk Low http://t.co/1qsDJ8T60j $ONVO $AMBSD $FXC $BHRT #ONVO #pennystocks #investing
leahanne
1 Jul 15 03:44:05
NFLX Netflix, Inc. Investor Opinions http://t.co/sYerMo08dx $NFLX $XLI $ONVO $AEM #NFLX #share #invest
DennyT
1 Jul 15 03:44:04
ONVO Organovo Holdings, Inc. Ask Size http://t.co/Ydy6bXAV6n $ONVO $KEG $MMTC $TPAC #ONVO #pennystocks #investing
Lucky Jimmy
1 Jul 15 03:42:21
JUNO Juno Therapeutics, Inc. Bid http://t.co/80sXr9tNfD $JUNO $ONVO $APC $UNGS #JUNO #nasdaq #tradeideas
nicholas
1 Jul 15 03:39:49
1LuckyJimmy: DIA SPDR DJ Industrial Average ETF Trust Tick http://t.co/h1MFSmzgOZ $DIA $FV $CMCM $ONVO #DIA #tr… http://t.co/Z2kvWGlcTg
Lucky Jimmy
1 Jul 15 03:38:23
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danrocks
1 Jul 15 03:37:36
CVS CVS Health Corp. Bid Size http://t.co/AT8a11RqfP $CVS $AIMH $ONVO $ANET #CVS #stockmarket #invest
DennyT
1 Jul 15 03:37:35
CTDH CTD Holdings Inc. Message Board Posts http://t.co/Y4ijlmkPSB $CTDH $CNC $ONVO $AXP #CTDH #invest #invest
Rosner Stocks
1 Jul 15 03:36:39
CAT Caterpillar, Inc. P/E Ratio http://t.co/ugXU7HCdEh $CAT $CMCM $ONVO $AXP #CAT #stocks #stockmarket
jim50
1 Jul 15 03:34:06
ARIA ARIAD Pharmaceuticals, Inc. Open http://t.co/mPrn4rMcTo $ARIA $JNK $PVCT $ONVO #ARIA #investing #investing
SmallCaps
1 Jul 15 00:26:04
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PennyStock Zone
1 Jul 15 00:01:00
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Analyst Actions
30 Jun 15 20:23:01
$ONVO: Analyst action by Piper Jaffray on Organovo Holdings: http://t.co/rKV1MO2SH4 http://t.co/lMMhxwXfBC
Stockaholics
30 Jun 15 20:15:41
$SUTI Has Now Seen 400% Gains In The Past 2 Weeks! Special Update: http://t.co/l1zbyeF3OQ $STNG $ONVO
WatchTheFunds
30 Jun 15 20:00:02
$ONVO Institutional ownership up 13.43% Q/Q, with 2,493,370 net purchase http://t.co/wBctdJeyOk http://t.co/Htfo8yD2iH
Penny Stock Secret
30 Jun 15 19:59:45
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Penny Stock Secret
30 Jun 15 19:53:32
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Invest | Donate
30 Jun 15 18:21:24
@1LuckyJimmy: XLY Consumer Discretionary Select Sector SPDR Ask http://t.co/7PCWfuRatL $XLY $RDUS $ONVO $XLU #XLY #stocks #invest
Lucky Jimmy
30 Jun 15 17:49:40
XLY Consumer Discretionary Select Sector SPDR Ask http://t.co/sEvoMXrvcA $XLY $RDUS $ONVO $XLU #XLY #stocks #invest
clayton
30 Jun 15 17:49:40
_ICE IntercontinentalExchange Group, Inc. P/E Ratio http://t.co/cRAnUpUgwE $_ICE $ONVO $GE $CNC #_ICE #finance #share
jim50
30 Jun 15 17:49:15
XLI Industrials Select Sector SPDR Change http://t.co/pzG0IQQ221 $XLI $EGRX $_ICE $ONVO #XLI #tradeideas #share
IH NASDAQ OMX
30 Jun 15 17:47:04
TWTR Twitter, Inc. E.P.S. http://t.co/jHAMKwKDKQ $TWTR $DIS $ONVO $VTI #TWTR #investing #stock
IH News Desk
30 Jun 15 17:45:05
SMN ProShares UltraShort Basic Materials 52Wk Low http://t.co/UtTMQVvxQV $SMN $MU $DVAX $ONVO #SMN #tradeideas #share
danrocks
30 Jun 15 17:43:34
ONVO Organovo Holdings, Inc. P/E Ratio http://t.co/IZpbj0FQpR $ONVO $JNJ $RDUS $MJMJ #ONVO #investing #pennystocks
Mededitor
30 Jun 15 17:01:41
@3DPrintGirl I invest in $DDD, $XONE, and $ONVO. This technology is highly disruptive.
Penny Stockington
30 Jun 15 16:24:52
$SUTI Has Gained 66.67%, Since Our Penny Stock Blog Alert! Huge News: http://t.co/llIxl7cUOL $STNG $ONVO
				
				
By  +Follow March 27, 2014 5:35AM
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