Shares of Biotricity Inc (OTCMKTS:BTCY) have come under immense pressure after a steady rise at the start of the year. The stock appears to have faced stiff resistance at the $1.60 level as short sellers continue to fight for control against the bulls.
BTCY Share Price Analysis
Formation of a higher low, after the recent pullback, could as well indicate the presence of buyers who are slowly regaining control from short sellers. With the stock bouncing back to the $1.17 level, sentiments in the market are that the stock could as well break out, from current lows.
After underperforming in 2018, depicted by share price as well as market value implosion, the management has come out fighting and in the process reiterated the company’s growth metrics. Improving fundamentals is one of the reasons why Biotricity looks like an ideal breakout play from current lows.
The company has achieved significant milestones in recent months. For starters, the company is on course to unveil its wellness monitoring systems as part of the research and development program with the University of Calgary. A 200% plus sales growth in the recent quarter is another development that affirms the company’s prospects when it comes to value generation going forward.
After the recent plunge, there is no doubt that Biotricity is still trading in a downtrend, given the underlying long-term bear trend. However, if recent price action is anything to go by, then the stock could as well have hit rock bottom and due for a bounce back.
The stock faces immediate resistance at the $1.60 level. A rally followed by a close above the critical resistance level should affirm the emerging uptrend. Above the $1.60 level, the stock could make a run for the $3 a share level, the next substantial resistance level. Below the $3 a share level, Biotricity remains susceptible to further drops, given the long-term downtrend.
What Does Biotricity Do?
Biotricity casts itself as a medical diagnostic and consumer healthcare company. The company is engaged in the development of biometric data monitoring solutions for healthcare and consumer markets. The company is also working on a telemetry solution that will enhance the reimbursement process in the healthcare sector.
Biotricity is a potential breakout play, in part because its underlying fundamentals have improved a great deal from last year. For starters, the medical diagnostics company has achieved significant milestones on the development of fetal /maternal ambulatory wellness monitoring systems.
In partnership with the University of Calgary, the company is working on an R&D program for a new wellness monitoring system. The two have already commenced clinical data collection as they seek to come with a fetal/maternal and ambulatory heart rate variability monitoring system.
Development of a new wellness monitoring system comes on the heels of Biotricity launching a first of its kind, medical grade device for the cardiac market dubbed Bioflux. Bioflux is a 3 in 1 monitoring solution designed to offer mobile cardiac telemetry.
“While still early in the Bioflux launch, we’re thrilled by the validation Bioflux has experienced thus far and we are expanding our sales organization substantially this year as a result. Our technology and solution are solid, and both our sales growth and market adoption continue to surpass our expectations each quarter,” said CEO Waqaas Al-Siddiq.
Biotricity registered a 211% increase in sales in Q3 as Bioflux exceeded customer expectations in device quality and user experience. After expanding the sales team, the company expects robust sales growth in 2019 as it moves to target a wider target audience across the U.S.
Buoyed by the 211% sales growth Biotricity is focusing all of its resources and time in growing its commercial organization to accelerate sales growth. Late last year the company announced plans to pursue the Holter market in addition to MCT market for Bioflux as it continues to pursue new streams of revenues.
“While MCT monitoring has always been the primary focus of our Bioflux solution, we are starting to realize that there is a significant demand for Holter services because many physicians value the traditional approach offered by short-term monitoring,” said Mr., Al-Siddiq.
While Biotricity has underperformed over the past year, it has started showing signs of bottoming out given the formation of a higher low. Underlying fundamentals have improved a great deal, the company having achieved significant milestones on the development of wellness systems.
Sales growth is another development that affirms the company’s long-term prospects. That said the stock looks set to continue bottoming out, in-line with improved market sentiments.
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Disclosure: We have no position in BTCY and have not been compensated for this article.