Stereotaxis Inc (OTCMKTS:STXS) is flirting with all-time highs in what is turning out to be an inflection year for the stock. After feeling the full pressure of short sellers, the stock has bottomed out with the upward momentum showing no signs of exhaustion. The stock is already up by more than 100% as investors continue to react to the announcement, the company is poised to come up with new treatments for arrhythmia.
Share Price Analysis
The spike follows the announcement that the company has teamed up with the Kansas City Heart Rhythm Institute to bring to market new innovative treatments for arrhythmia patients. With the stock trading in a steep uptrend, the sky could as well be the limit as it continues to register new 52-week highs.After the recent spike, pullbacks should act as buy opportunities where buyers could come in and continue pushing the stock up. Immediate support on any pullback is seen at the $1.60 level. Above the $1.60 level, Stereotaxis remains a buy and looks set to continue powering high. STXS Daily ChartA breach of the $1.60 support level would open the door for short sellers to push the stock back to the $1.10 level, a critical support level. Below the $1.10 level, the stock remains susceptible to further drops on a continuation of the bear trend.In our view, Stereotaxis looks set to continue powering high, given the strength of the upward momentum and the bullish biases supporting further movements on the upside.
What Does Stereotaxis Do?
Stereotaxis casts itself as a leader in innovative robotic technologies for the treatment of abnormal heart rhythms. One of its flagship products is, Niobe ES robotic system that physicians use to complete interventional procedures. Vdrive system is another lead product that offers navigation and stability for diagnostics and therapeutic devices.
Why is Stereotaxis Exploding
Stereotaxis is exploding in response to the announcement it is poised to come up with new treatments, targeting abnormal heart rhythms. The company has already inked a strategic partnership with Kansas City Heart Rhythm as part of the latest push. The two are to join forces in the effort of coming up with cutting edge treatments targeting arrhythmia patients.Under the terms of the agreement, Kansas City Heart Rhythm Institute is to establish a new program that is to be based at Overland Park Regional Medical Center. The center is to act as a research center for expanding access to advanced robotic technology for the development of arrhythmias treatments.
“Stereotaxis’ robotic technology enables improved outcomes and unparalleled safety for patients and the hospital clinical team during cardiac ablation procedures. It also allows us to address better a range of complex arrhythmias that otherwise might not have been treated, providing hope to many patients who otherwise would have had no options for cardiac arrhythmia,” said Dr. Dhanunjaya Lakkireddy.
Kansas City Heart Rhythm has reiterated its commitment to working with Stereotaxis to come up with excellent heart care, using advanced technology. The two are to leverage the latest technology to come up with a possible outcome for patients.The mission is to be supported with the acquisition of Stereotaxis advanced robotic technology, in addition to large screen display and connectivity solutions. The system should be up and running in the second half of the year.
“We are pleased to begin this partnership knowing that it allows us to care for patients in a way we have not been able to in the past, furthering our guiding vision to be the premier healthcare destination for patients suffering from cardiac arrhythmias,” said Dr. Lakkireddy.
Bottom Line
Stereotaxis is enjoying an excellent run in the market depicted with a 100% plus spike since the start of the year. After a long period of underperformance, 2019 is slowly turning out to be an inflection year as the stock continues to hit higher highs in the market.Development of arrhythmia treatments is a major development that continues to strengthen the stock’s sentiments in the street. The fact that the company has also inked a deal with Kansas City Heart Rhythm all but affirms long-term growth prospects.A closer look at price action activity it is clear that the stock looks set to continue powering higher. However, waiting for pullbacks should be the objective on the risk-reward front.We will be updating our subscribers as soon as we know more. For the latest updates on STXS, sign up below!Disclosure: We have no position in STXS and have not been compensated for this article.
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