Genetic Technologies Limited (ADR) (NASDAQ: GENE)
Genetic Technologies has had a rough time in the market lately. Recently, the company went on a very successful fund raising spree. However, to raise the funds, they had to issue new shares; ultimately causing share dilution and leading to a weeks long downtrend.
What We Saw From Genetic Technologies Yesterday
Yesterday, it seemed as though investors decided that dilution was no longer an issue and started pumping money into the stock. By mid day, it was up more than 20% and would keep climbing. In the end, GENE climbed to $4.94 per share by the closing bell!
Investor Excitement Is Keeping The Momentum Alive
As we see in several cases, after posting impressive gains, a breakout starts to become visible in the charts as more and more investors and day traders decide they’d like to get in on the action. Today, Genetic Technologies stock is definitely in breakout mode. Currently (11:54), GENE is trading at $5.43 per share after a gain of 9.92% so far today.
What We Can Expect From GENE Throughout The Rest Of The Week
It seems clear that Genetic Technologies stock will end in the green today; however, I do think that we may be reaching the too much too fast type of growth. So, I’ll be watching the charts for parabolic patterns telling me that the stock has maxed out. While I do think that the stock will end the week in the green, at some point either tomorrow or Thursday, we’ll most likely see a correction in the stock as we tend to see after any small-cap biotech breakout. Nonetheless, this is a great company and in the long run, I’m expecting to see great things!
What Do You Think?
Where do you think Genetic Technologies stock is headed and why? Let us know in the comments below!