| Mentioned: | OGEN |
Oragenics Inc. (NYSE: OGEN) shares skyrocketed higher Tuesday after the company entered into a licensing agreement with the National Research Council of Canada to pursue the rapid development of next-generation SARS-CoV-2 vaccines.
This platform should allow productions of cell lines within six to eight weeks compared to six to nine months for traditional production.
Oragenics was up 38.33% at 86 cents at last check.
Oragenics Daily Chart Analysis
- Shares have been falling in the last few months, but just broke out of what technical traders would call a falling wedge pattern.
- The stock crossed above both the 50-day moving average (green), and the 200-day moving average, indicating sentiment in the stock started turning bullish.
- These moving averages may both hold as an area of support in the future.
See also: Best Healthcare Penny Stocks
Key Oragenics Levels To Watch
- The stock shot higher out of the pattern after it got the vaccine news today. The stock may see consolidation in the coming days.
- Tuesday, it looks like the stock had trouble getting above the $1 level; this potentially could be a place of resistance in the future but it is likely still too early to call. The $1 level is a psychological resistance level for many traders who trade sub-$1 stocks.
- The Relative Strength Index (RSI) shot higher Tuesday and now sits at 76 on the indicator. This puts it in the overbought range, showing there has been a large influx of buyers since the news was released.
What's Next For Oragenics?
Bullish traders would like to see the stock continue to rise until it runs out of gas, and then consolidate while holding some of the gains it made from the run. Consolidation is key to see if the stock is ready to make another leg up.
Bearish traders would like to see the stock fall and be unable to hold the gains from the breakout. This could mean that the stock is not ready for its next leg up. Bears would also like to see the stock fall back below the moving averages for a potential change in sentiment and trend.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
