Shares of Bionovate Technologies Corp (OTCMKTS: BIIO) are exploding on the company acquiring a crucial patent as part of a new strategy of developing non-invasive cancer imaging and identification systems. The stock has rallied by more than 500%, since March, in what is turning out to be an inflection year.
Bionovate Technologies Price Analysis
The spike has come on huge traded volumes in the market, signaling renewed investor interest after a period of consolidation in the first two months of the year. The stock is currently trading in a steep uptrend as bulls continue to take the fight to the bears.
For the better part of the year, pullbacks from higher highs, have acted as entry positions from where bulls have come in and continued to push the stock up the charts. The stock has recouped all the losses accrued over the past year, waiting to see if the upward momentum has what it takes to continue fuelling the upside action.
A spike to the $1.91 level leaves Bionovate Technologies exposed to the $2 mark, a crucial technical level. A rally followed by a close above the $2 mark should read dorm the stock’s break out credentials after turning bullish in recent weeks.
However, failure to take out the $2 resistance level could attract some sell-off that could see the stock consolidating in a range or plunge lower. Immediate support on pullbacks from current highs is seen at the $1.5 level from where the stock commenced the current leg higher.
What Does Bionovate Technologies Do?
Bionovate Technologies bills itself as a medical device company engaged in the development of automated treatments for age spots. The company is currently working on automated computerized systems that have the potential to treat age spots. In addition, the company is looking to diversify its operations by developing cancer imaging and detection systems.
Why is BIIO Exploding?
A combination of favorable technical and strong share price action attests to investors’ confidence about Bionovate Technologies long-term prospects. At the start of the second quarter, the medical device company confirmed the acquisition of a patent from Ramot University in Tel Aviv as part of a new strategy of developing non-invasive systems for addressing cancer imaging and identification.
Patent (number 6858007) that the company has acquired details a method and a system for automatic classification and quantitative evaluation of adnexal masses. The patent is based on cross-sectional or projection images of theadnex.
With the new patent, Bionovate Technologies is seeking to enhance ovarian tumor detection. To do so, the company intends to come up with an efficient way classifying ovarian masses and detecting malignant tumors, to counter the high mortality rate due to ovarian cancer.
“In order to quantitatively assess the malignancy of an ovarian pathology, it is common to score several properties of the ovarian mass (obtained from ultrasound images) according to a pre-determined table and to use the resulting value for classification. Currently, no existing scoring system is based on either automatic or semi-automatic image analysis,” a statement read.
What Next For Bionovate Technologies
While Bionovate Technologies has taken the market by storm depicted by a 500%-plus spike, it remains to be seen if it will continue to trend higher. Standing in the way of further action way is the lack of news flow, needed to verify the company’s long-term prospects.
Bionovate Technologies has shied away from providing much-needed updates detailing the core business as well as long-term prospects. The lack of such updates could come to bite, as it would make it difficult to justify the hefty valuation the stock enjoys in the market.
Price action activity indicates that the stock could continue to surge as a pullback play given the strength of the upward momentum. However, the big test would come on the stock experiencing a major pullback from current highs.
With such a move, the company will have to serve a groundbreaking catalyst to fuel further movements on the upside. Failure to do so could give short sellers a reason to continue pushing the stock lower. As it stands, the patent acquisition news is already priced, in the stock price.
For investors eyeing opportunities in the stock, it may be wise to consider OTC Markets has labeled the stock “buyer beware.” Caution is indeed warranted.
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Disclosure: We have no position in BIIO and have not been compensated for this article.