logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

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

By  +Follow March 27, 2014 5:35AM
Share:
Tickers Mentioned:

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.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for ONVO
equities.com
22 Oct 14 19:37:46
Organovo (ONVO) Drops 5.05% on October 22 $ONVO http://t.co/8W6rsm8Ak5
Stockaholics
22 Oct 14 14:57:01
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/H5HPSVIRF1 $ONVO $BTG $LNG
Daily Contracts
22 Oct 14 14:45:01
Real-Time feed of company contracts, original agreements and executive updates from Organovo Holdings, Inc. $ONVO http://t.co/SAjv6lsBUi
Stockaholics
22 Oct 14 11:48:37
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $STNG $ONVO
Stockaholics
22 Oct 14 11:04:30
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $ONVO $BTG $LNG
Anthony
22 Oct 14 05:41:27
RT @Benzinga: Five #3D #Printed Body Parts $DDD $MTLS $ONVO http://t.co/DU2SDQPAm1
Quantpost Technology
22 Oct 14 04:56:41
$DDD News: "Five #3D #Printed Body Parts $DDD $MTLS $ONVO …" http://t.co/WD6MtOqDix Board view: https://t.co/GQanTmroH3
Benzinga.com
22 Oct 14 04:56:40
Five #3D #Printed Body Parts $DDD $MTLS $ONVO http://t.co/DU2SDQPAm1
Jason Bond
22 Oct 14 04:33:47
Who Is Making Money With Jason Bond Picks? http://t.co/CnnhRROQkK $IBIO $VSR $LAKE $GLUU $BIOF $FREE $TKMR $GRPN $ZNGA $ONVO
Stockaholics
22 Oct 14 00:47:41
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $STNG $ONVO
Stockaholics
21 Oct 14 22:33:40
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $ONVO $BTG $LNG
Stockaholics
21 Oct 14 13:08:23
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $ONVO $BTG $LNG
MoneyEmpire
21 Oct 14 11:11:19
My investment $ONVO moving nice
ProTrader Mike
21 Oct 14 11:11:01
(2) end day movers $NSPH at .75 .76 .77 and $ONVO at 6.15 .-.20
ProTrader Mike
21 Oct 14 11:01:25
$ONVO spike - rocket trade play here long 6.15 -.20 and more .20 -.25 or .10 -.15
Stockaholics
21 Oct 14 00:28:47
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $STNG $ONVO
Stockaholics
20 Oct 14 21:33:35
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $ONVO $BTG $LNG
Stockaholics
20 Oct 14 17:49:56
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $ONVO $BTG $LNG
3Dprintonomics
20 Oct 14 16:26:01
RT @3DPrintingStock: $DDD $SSYS $XONE $AMAVF $VJET $ONVO are the components of the "3D Printing Stock Index" which rose 7.9% this week h…
Lucas Michelson
20 Oct 14 15:38:15
$ONVO biggest loss for the year.Let my hope exceed the signs of the chart. Entered at 7.93/Sh.Doubling down at 7.6182/Sh.Sold at 5.7201/Sh.
3DGEOM
20 Oct 14 14:37:19
RT @DW_3DPrinting: Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/kjY7PooeeN via #3dprinting, However, a liver is a far cry from…
Stockaholics
20 Oct 14 14:06:25
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/lWd4jUXeCy $STNG $ONVO
ARK Indu Innovation
20 Oct 14 13:32:01
Canada's Aspect Biosystems is #3D bioprinting human tissue for drug testing. http://t.co/AGrjRvoMDU Competition for $ONVO?
Stockaholics
20 Oct 14 13:25:24
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/lWd4jUXeCy $ONVO $BTG $LNG
Stockaholics
20 Oct 14 09:10:43
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $ONVO $BTG $LNG
Rapid Prototyping
20 Oct 14 07:25:43
RT @DW_3DPrinting: Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/kjY7PooeeN via #3dprinting, However, a liver is a far cry from…
Leslie Langnau
20 Oct 14 06:53:10
Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/kjY7PooeeN via #3dprinting, However, a liver is a far cry from liver tissue
Peter Rivera
20 Oct 14 04:48:14
"@Benzinga: Five #3D #Printed Body Parts $DDD $MTLS $ONVO http://t.co/0gD0IpYVJa"
Ipad Unleashed
20 Oct 14 04:44:33
RT @Benzinga: Five #3D #Printed Body Parts $DDD $MTLS $ONVO http://t.co/DU2SDQPAm1
ZOZO
20 Oct 14 04:42:35
Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/QMUjpKqQTx via @benzinga
Quantpost Technology
20 Oct 14 04:41:46
$DDD News: "Five #3D #Printed Body Parts $DDD $MTLS $ONVO …" http://t.co/WD6MtOqDix Board view: https://t.co/GQanTmroH3
Benzinga.com
20 Oct 14 04:41:46
Five #3D #Printed Body Parts $DDD $MTLS $ONVO http://t.co/DU2SDQPAm1
Stockaholics
20 Oct 14 00:42:55
After Massive Gains On Penny Stock Picks, another New Pick Is Coming! Check it out: http://t.co/YX0NLZhRQ5 $ONVO $BTG $LNG
Stockaholics
19 Oct 14 20:22:26
IBIO Closed Up 69.84% After Our Penny Stock Alert! New Picks Coming: http://t.co/OG2rloNNni $ONVO $BTG $LNG
Stockaholics
19 Oct 14 17:39:14
IBIO Closed Up 69.84% After Our Penny Stock Alert! New Picks Coming: http://t.co/OG2rloNNni $ONVO $BTG $LNG
Ana Maria Saaibi
19 Oct 14 09:22:51
RT @rakeshnews: Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/d36YV6GzVa via @benzinga
Materialise
19 Oct 14 04:07:55
RT @rakeshnews: Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/d36YV6GzVa via @benzinga
Stockaholics
18 Oct 14 13:33:06
IBIO Closed Up 69.84% After Our Penny Stock Alert! New Picks Coming: http://t.co/OG2rloNNni $STNG $ONVO
J.Robinson
18 Oct 14 10:28:38
Five #3DPrintedBodyParts $DDD $MTLS $ONVO http://t.co/88EX6wkdBl via @benzinga
Stockaholics
18 Oct 14 10:22:35
IBIO Closed Up 69.84% After Our Penny Stock Alert! New Picks Coming: http://t.co/OG2rloNNni $STNG $ONVO
Stockaholics
18 Oct 14 04:20:34
IBIO Closed Up 69.84% After Our Penny Stock Alert! New Picks Coming: http://t.co/OG2rloNNni $ONVO $BTG $LNG
DarkDAO
18 Oct 14 00:30:08
RT @alfredsunil: Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/8AEFTbnfnc via @benzinga #3Dprinting
Alfred Sunil M
18 Oct 14 00:04:09
Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/8AEFTbnfnc via @benzinga #3Dprinting
Coastal Returns
17 Oct 14 14:52:36
@pennypickerr Current longs are $ONVO $SRE $QCOM $BLL swings $ONCS $LRAD $ISIS
Rakesh
17 Oct 14 14:50:49
Five 3D Printed Body Parts $DDD $MTLS $ONVO http://t.co/d36YV6GzVa via @benzinga
Sarah Pounds
17 Oct 14 14:46:36
RT @3DPrintingStock: $DDD $SSYS $XONE $AMAVF $VJET $ONVO are the components of the "3D Printing Stock Index" which rose 7.9% this week h…
Stockaholics
17 Oct 14 14:13:11
IBIO Closed Up 69.84% After Our Penny Stock Alert! New Picks Coming: http://t.co/OG2rloNNni $ONVO $BTG $LNG
3DPrintingStocks.com
17 Oct 14 14:05:00
$DDD $SSYS $XONE $AMAVF $VJET $ONVO are the components of the "3D Printing Stock Index" which rose 7.9% this week https://t.co/zvTJ6VVQK0
Stockaholics
17 Oct 14 10:45:21
Platinum Penny Stock Picks Gained 125% last week! New Pick Coming Today! Check It Out: http://t.co/7gQJ2ZCjuq $STNG $ONVO
Stockaholics
17 Oct 14 10:08:48
Platinum Penny Stock Picks Gained 125% last week! New Pick Coming Today! Check It Out: http://t.co/7gQJ2ZCjuq $ONVO $BTG $LNG
				
				
By  +Follow March 27, 2014 5:35AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.