Medical doctor in the laboratory with a biological tube for analysis and sampling of Covid19 infectious disease. Coronavirus
Novacyt (LON: NCYT) share price is attempting to break out from the high timeframe downtrend. The price attempted to break above the trend line last week before being pushed 7.8% down by the bears. The shares for the biotech company are changing hands at 75.1p, 3.35% down till press time.
The daily price chart for Novacyt also shows that the price broke above 200 MA at the end of July. The stock price usually gains bullish momentum after breaking above the 200 MA. Novactyc shares currently sit 27% above the key moving average.
The Anglo-French biotech company expects to earn less revenue in the first half, due to diminishing COVID-19 cases. Novacyt reported £500,000 in COVID-19-related half-yearly sales as compared to £13 million last year. The biotech company also reported a 3% quarterly increase in non-COVID-19 revenue.
In other news, Yourgene Health shareholders approved the acquisition offer made by Novacyt. The acquisition offer valued the entire share capital of Yourgene Health at about £16.7 million. This deal is expected to be finalized in the third quarter and will allow Yourgene Health to pay its outstanding debt to Silicon Valley Bank.
The price chart for LON: NCYT shows that the price is facing resistance from the downward trendline. This suggests that the bears are preventing the price from breaking above it.
If the bulls dominate the bears and break above the trendline, I expect a rally all the way to the yearly high of 157.2p. On the other hand, Novacyt share price forecast would become bearish if the price faces an intense rejection from the trendline. In this case, the price may retest the 200 MA again.
In the meantime, I’ll keep sharing the updated Novacyt forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 30, 2023, 16:48 BST 16:48