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.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for ONVO
3Dprintonomics
22 Nov 14 17:23:53
RT @Organovo: Organovo Announces Commercial Release of the exVive3D™ Human Liver Tissue http://t.co/iLJ2tjKYoF $ONVO
Stockaholics
22 Nov 14 13:38:50
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $ONVO $BTG $LNG
unemon
22 Nov 14 13:13:42
do a simple GooG search for "exVive3D". No results other than Financial blogs + Co PR. Unless Pumpers buy "exVive3D", $ONVO is going down
unemon
22 Nov 14 13:10:04
$ONVO, the start of the End! After exVive3D commercialization announcement, no more Excuses for $ONVO. My bet is .. No meaningful Rev! ...
Stockaholics
21 Nov 14 23:53:54
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $ONVO $BTG $LNG
Stockaholics
21 Nov 14 17:26:27
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $STNG $ONVO
Sarcasm Bot
21 Nov 14 14:26:36
$ONVO What they told us we'd get and what we actually got
Large Void Bot
21 Nov 14 14:00:40
Popular: $ONVO, $JKS, $EJ, $EEM, $AMTD, $STT, $OZRK, $ENTA, $DHI, $TSL, $MWE, $BBT, $TLT, $SYY, $WAIR, $ANSS, $EPB
B3dgeable
21 Nov 14 13:44:50
RT @ARKindu: Wondering whether $ONVO #3Dprinted liver product will be better than Insphero's? Differences here: http://t.co/aD1khx1t2o
ARK Indu Innovation
21 Nov 14 13:34:00
Wondering whether $ONVO #3Dprinted liver product will be better than Insphero's? Differences here: http://t.co/aD1khx1t2o
Stockaholics
21 Nov 14 11:27:01
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $STNG $ONVO
Stockaholics
21 Nov 14 10:18:39
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $ONVO $BTG $LNG
OptionsPlay
21 Nov 14 09:32:20
$ONVO s/t and l/t trends turns bearish today as it tests its $6.32 support level http://t.co/v5cLcwwJOJ
Stock Status
21 Nov 14 09:04:42
Trending Stocks - $JKS $GEOS $TTPH $ONVO $KMI $AFOP $TASR $INTC $GASL get details http://t.co/z2NRKhR4wr
FRANCIS MARTINEZ
21 Nov 14 06:48:33
$ONVO Wouldn't be surprised on order news over the weekend
Penny Stock Secret
21 Nov 14 06:36:58
The Most Accurate Penny Stock Alert Service Made $54,000 Yesterday Click here http://t.co/SVqoMlijqL .. $STNG $ONVO
Joe Hefferon
21 Nov 14 06:03:28
RT @nyswiss1: The Strange and Radical New World of 3-D Printed Body Parts | WIRED http://t.co/BrJf7HI519 $ONVO
Random Stocks Daily
21 Nov 14 05:55:28
And today's list is: $NEE-J $BRKL $ONVO $ERC $MUX $SPGH $GLW $TRUP $MGLN $PSCU. More details at http://t.co/FOOriXs81o
Joe Hefferon
21 Nov 14 05:52:50
RT @Organovo: Organovo Holdings, Inc. to Provide Corporate Update and Investor Presentation in a Live, Interactive Webcas... http://t.co/bo…
Lea
21 Nov 14 03:59:14
My watch: $UVXY, $JASO, $SDRL, $GFI, $DUST, $ONVO, $MNKD, $PLUG, $XOMA, $RFMD, $CLDX, $SUNE, $CLF, $ARWR, $BBRY, $ARIA, $JMEI, $GRPN, $PBR
Penny Stock Secret
21 Nov 14 03:54:42
The Most Accurate Penny Stock Alert Service Made $54,000 Yesterday Click here http://t.co/SVqoMlijqL .. $ONVO $BTG $LNG
Stockaholics
20 Nov 14 23:58:54
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $STNG $ONVO
Stockaholics
20 Nov 14 22:51:02
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $ONVO $BTG $LNG
BankerBros
20 Nov 14 20:48:47
http://t.co/Iy7FzKCya3 $DDD $SSYS $ONVO $XONE $VJET $PCP $ADSK
poop
20 Nov 14 12:20:08
@Organovo It's be nice if you guys started buying up $ONVO shares
Stockaholics
20 Nov 14 11:55:02
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $STNG $ONVO
Jason Napodano, CFA
20 Nov 14 11:09:19
RT @BiotechSage: $ONVO looking to pump where they pump best - retail investors http://t.co/GkTF9RsokH
BiotechSage
20 Nov 14 11:08:55
$ONVO looking to pump where they pump best - retail investors http://t.co/GkTF9RsokH
Mededitor
20 Nov 14 10:28:33
@seanlahman Precisely. I've invested in several firms for reasons like that. $DDD, $CAMT, $XONE, $ONVO
Penny Stock Secret
20 Nov 14 08:10:27
This �Millionaire Maker� For Traders Shares His Secrets! Click here http://t.co/SVqoMlijqL .. $STNG $ONVO
John Beckwith
20 Nov 14 06:25:59
RT @dveprek: Watchlist for 11-20: $CANF $UEC $VGGL $VTAE $WHX $GPRO $GERN $ONVO $VOIL $SOPW $AEMD $ECSL $COLV $FCCN
David Veprek
20 Nov 14 06:08:16
Watchlist for 11-20: $CANF $UEC $VGGL $VTAE $WHX $GPRO $GERN $ONVO $VOIL $SOPW $AEMD $ECSL $COLV $FCCN
Greg Appleton
20 Nov 14 06:03:07
RT @ttranpham: Organovo: Liver Tissue #3Dprinting Has Arrived? | tuan@tranpham.com | $ONVO | http://t.co/WKRQMaILwX
JanMiotto
20 Nov 14 05:57:00
The Strange and Radical New World of 3-D Printed Body Parts | WIRED http://t.co/BrJf7HI519 $ONVO
Green Guy Finance
20 Nov 14 05:45:20
RT @Organovo: Organovo Holdings, Inc. to Provide Corporate Update and Investor Presentation in a Live, Interactive Webcas... http://t.co/bo…
Rapid Prototyping
20 Nov 14 05:44:37
RT @ttranpham: Organovo: Liver Tissue #3Dprinting Has Arrived? | tuan@tranpham.com | $ONVO | http://t.co/WKRQMaILwX
Penny Stock Secret
20 Nov 14 05:39:49
This �Millionaire Maker� For Traders Shares His Secrets! Click here http://t.co/SVqoMlijqL .. $ONVO $BTG $LNG
ZOZO
20 Nov 14 05:34:04
RT @Organovo: Organovo Holdings, Inc. to Provide Corporate Update and Investor Presentation in a Live, Interactive Webcas... http://t.co/bo…
Tuan TRANPHAM
20 Nov 14 05:34:00
Organovo: Liver Tissue #3Dprinting Has Arrived? | tuan@tranpham.com | $ONVO | http://t.co/WKRQMaILwX
Joe Hefferon
20 Nov 14 05:31:46
RT @Organovo: Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/7wONaZm86T $ONVO
Organovo News
20 Nov 14 05:29:23
Organovo Holdings, Inc. to Provide Corporate Update and Investor Presentation in a Live, Interactive Webcas... http://t.co/bov9aYy8Vp $ONVO
Karen Keeley
20 Nov 14 05:17:55
RT @StockNews_: $ONVO - Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/VT8CPSgQP9
Clover Bragg
20 Nov 14 05:07:20
$ONVO - Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/JbrpNm6o3m
StockNews
20 Nov 14 05:07:19
$ONVO - Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/VT8CPSgQP9
Stocks News&Markets
20 Nov 14 05:07:16
$ONVO - Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/uYeTph6bTE
NASDAQ
20 Nov 14 05:07:14
$ONVO - Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/FLwcdloo49
Pzaa...Guy
20 Nov 14 05:07:07
$ONVO - Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/0gp0qMbkk3
Organovo News
20 Nov 14 05:05:24
Organovo to Present at the 26th Annual Piper Jaffray Healthcare Conference http://t.co/7wONaZm86T $ONVO
Stockaholics
20 Nov 14 03:50:04
578% Gains On Penny Stocks in one month! Plus a New Pick Is Coming: http://t.co/2W3yKD2d5Q $ONVO $BTG $LNG
iHangout
20 Nov 14 01:44:13
http://t.co/v9Q35OcbGf chartguy89: Stock Charts: ONVO 6.54 Stock Charts $ONVO Organovo Holdings http://t.co/5Z0GZ1UQX3
				
				
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.