Shares of Genedrive PLC (LON: GDR) appear to have bottomed at a crucial resistance level following the massive selloff triggered by the release of its earnings results for the first half of its financial year ending in December 2020.
Investors were disappointed by the molecular diagnostics company’s lacklustre revenues amid delays in developing and producing some of its main products, such as its 96-SARS-CoV-2 rapid test that is now late to the market.
The delayed regulatory approvals of its rapid coronavirus testing kits also weighed on the company’s shares as investors adjusted their expectations of the test generating substantial revenues for the company.
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Regardless, Genedrive was optimistic that it would have a stellar second half starting this January, driven by its partnerships with Beckman Coulter Life Sciences, its collaboration with the European Health Ministry and its distribution contract with Mountain Horse Solutions.
The company’s shares have held above the 60p level for a few days, but the battle to control its share price between the bulls and bears is not yet over. The level has to hold over the next few days before saying that the recent selloff has run its course.
Genedrive shares have formed a new trading range, and as always, the easiest way to trade a range is to buy at the bottom and sell at the top. Bullish traders interested in buying the company’s shares should find the current price very attractive.*
However, nothing is guaranteed in the markets, and we could easily see the price break down below the resistance level and head lower, but the bullish case is more compelling at this point.
Genedrive share price.
Genedrive shares seem to have bottomed after the massive drop triggered by its earnings results. Can they rally higher?