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2 Biopharma Stocks That Look Ready For A Bullish Reversal

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2 Biopharma Stocks That Look Ready For A Bullish Reversal

Ocugen Inc. (NASDAQ: OCGN) and Bionano Inc. (NASDAQ: BNGO) are two biopharma stocks moving higher Wednesday. Ocugen is moving after its partner Bharat Biotech announced positive study results, and Bionano gained ground after its system for optical genome mapping was adopted by two large labs in the U.K.'s National Health System. 

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Ocugen Daily Chart Analysis

  • Ocugen is nearing the end of what technical traders would call a falling wedge pattern.
  • The stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue), indicating the stock is most likely facing a period of consolidation.
  • The 50-day moving average may hold as a resistance level and the 200-day moving average may hold as support in the future.

Key Levels To Watch

  • The stock has been falling the last couple months, forming what technical traders may call a falling wedge pattern.
  • This pattern is considered a bullish reversal pattern, as connecting the highs shows a much steeper drop compared to connecting the lows of the chart, forming a wedge.
  • A break above the line connecting the highs may signal the stock is changing trends and ready to start heading back up.
  • A break below the line connecting the lows could bring about a stronger downward push.

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Bionano Daily Chart Analysis

  • Bionano is also forming a falling wedge pattern.
  • The stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue), indicating the stock is most likely facing a period of consolidation.

Key Levels To Watch

  • Similar to Ocugen, Bionano has been falling in the last couple months, also forming a falling wedge pattern.
  • The bullish reversal pattern can be confirmed when the price is able to cross above the line formed by connecting the highs. A break above this line shows that the stock could be ready to change trends.
  • A break below the line connecting the lows could bring about a stronger downward push.
 

Related Articles (BNGO + OCGN)

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