After a sustained downtrend that kicked off in early December, the Genedrive share price seems to have begun the slow recovery process after notching up gains for the 4th straight day on Tuesday. The stock looks set to continue the advance on Wednesday after breaking the resistance at 18.60 with a reasonable penetration close.
The Genedrive share price had gained 14.21% on 23 February after securing distribution agreements for its point-of-care COVID-19 test. However, the onset of the Russian invasion of Ukraine a day later impacted the sentiment on the London Stock Exchange and depressed the share price back then.
Despite the exit of Chief Financial Officer Matthew Fowler, the company continues to press on to seek the adoption of its COVID-19 test kits, which have been licensed for distribution in Spain, Oman, Portugal, and the UAE. As of writing, the stock had gained 16.25% in the previous day of trading and looks set for a higher open on Wednesday.
Following the completion of the falling wedge pattern on the daily chart with an upside breakout, the Genedrive share price candles have broken beyond the 18.60 resistance level. This scenario sets up a drive to the north, where the barrier at 24.00 awaits the bulls. Attainment of this price level completes the measured move from the wedge pattern. Any further advances will have to contend with resistance levels at 30.38 (14 January 2022 high) and 38.90 (3/29 December 2021 highs).
On the flip side, the bears would be looking to reject the advance at 30.38. This rejection provides a retest of 24.00 and a subsequent breakdown of that price level. This scenario would make 17.60 available once more as a downside barrier before 12.28 comes into the mix as yet another southbound target.
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This post was last modified on Mar 16, 2022, 17:30 GMT 17:30