Early detection is the key to improving outcomes in any disease. That's the specialty of HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM), experts in NGS-based molecular profiling. The company’s proprietary HTG EdgeSeq technology automates complex, highly multiplexed molecular profiling from solid and liquid samples, even when limited in amount, which its customers use to identify biomarkers important for precision medicine, to understand the clinical relevance of these discoveries, and ultimately to identify treatment options.
Like many other small caps in the healthcare space, HTGM stock has been skidding lower. Although after hitting $0.60 late last month, shares are trying to post a rebound, including two straight positive weeks.
What we see now is a stock that is looking to breakout through a resistance at $0.88, which should result in a strong return. 88 cents is not only static resistance, but it is the area of the 50-day moving average ($0.91), which the stock hasn't been above since April. We see it as a turning point if HTGM can climb back over it. We see some resistance at $1.03, but are aiming much higher, setting our price target at $1.25, just beneath some more resistance at $1.30.
As for the support side of things, there is some at $0.80 and, honestly, that's the only point we are looking at. Yes, there is more at $0.70, but we won't stick around that long and risk that much. Be smart on HTGM and set a stop/loss at $0.79.
You can make a profit on a downtrending stock; you just must follow a game plan. In this case, taking an entry at 89 cents on the break of resistance provides upside of 40.5% to our price target, while the downside is kept to just 11.2% to a stop/loss at $0.79.
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