Northwest Biotherapeutics, Inc. (OTCMKTS:NWBO) is back to one-year highs after a stellar start to the year. The stock has been on an excellent run, on bottoming out after a steep pullback late last year. After a recent spike, the stock is staring at a critical resistance level that could elicit short selling pressure.
Share Price Analysis
The stock might as well have run its course as it has continued to power high even on the lack of substantial updates from the management. For the stock to continue climbing the ladder, then Northwest Biotherapeutics will have to serve groundbreaking catalysts.
The $0.36 mark is a critical resistance level from where short sellers could be tempted to come in and push the stock lower. It is at this level, early last year, that the stock did come under pressure consequently tumbling to the $0.18 level.
A rally followed by a close above the $0.36 level should reaffirm the bull trend setting the stage for the stock to make a run for two-year highs. In the meantime, the $0.30 level is a critical support level that short sellers will have to breach if they are to continue pushing the stock lower.
Below the critical support level, bears could push the stock back to the $0.24 level the next substantial support level
About Northwest Biotherapeutics
Northwest Biotherapeutics bills itself as a biotechnology company focused on the development of personalized immune therapies for cancer. The company owns a proprietary DCVax platform that leverages dendritic cells to mobilize patients’ immune system to attack cancer.
Balance Sheet Boost
Northwest Biotherapeutics has been on an excellent run in 2019 after bottoming out from a steep pullback. The rally has coincided with the appointment of David Innes as the vice president for investor’s relations. Innes joined the company with vast experience of managing portfolios at several Wall Street Firms.
“After decades of focusing on small to mid-cap biotech and biomedical companies, I was attracted to NW Bio by what I believe is their broad potential, due to their approach to addressing the complexity of solid tumors which comprise most cancers. As such, I believe NW Bio’s DCVax technology has the potential to be a meaningful therapy for many types of solid tumor cancers,” Innes in a statement.
Apart from Innes appointment, the last piece of information about Northwest Biotherapeutics came in December. It is at this time that the biotechnology confirmed the closing of a UK Property Transaction. Closing of the transaction involved funding of about $47.3 million in gross proceeds. The company also assumed ownership of 17 acres of the property expected to add value in the future.
“We are pleased to finish out the year strongly, with the recent updated interim data from our Phase 3 trial of DCVax-L for Glioblastoma, and with this UK transaction providing a sizeable war chest of non-dilutive funding. We believe these accomplishments position us to move forward strongly in the New Year on the months of work associated with completion of the Phase 3 trial,” commented Linda Powers, CEO of NW Bio.
Northwest Biotherapeutics boasts of a solid balance sheet following the closing of the U.K transaction. The revamped balance sheet means the company is well financed to see through Phase 3 clinical trial of DCVax-L.
The biotechnology company is working on DCVax-L as a novel treatment for Glioblastoma, which is the most aggressive and lethal form of brain cancer. The company is also working on Phase I/II trials of DCVax-Direct for all types of solid tumor cancers.
Northwest Biotherapeutics has turned bullish after coming under immense pressure from the bears late last year. A rally to one-year highs affirms renewed investor interest in the company as it continues to work on novel treatments for various types of cancers.
However, the stock faces an uphill task to continue edging higher as it is currently staring at a critical resistance level at $0.36 level. A lack of new updates, as well as catalysts, raises the prospects of the stock coming under pressure especially from short sellers.
While the company has made important progress on the development of DCVax-L platforms, it needs to serve new catalysts if the stock is to continue edging higher. For now, it might be wise to wait and see if the stock will take out the key resistance level.
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Disclosure: We have no position in NWBO and have not been compensated for this article.