Price action activity indicates Vystar Corp (OTCMKTS:VYST) is a potential pullback play. After a steep pullback from all-time highs, the stock has started showing signs of making a run for 52-week highs of $0.16. A string of positive news has helped boost the stock’s sentiments triggering a bounce back from a critical support level.
VYST Share Price Analysis
The stock is already up by more than 500% for the year even on coming under pressure on skyrocketing to all-time highs in February. The stock’s solid performance can be attributed to a number of catalysts key among them being the expansion of the company’s product line.
Vytex has launched a number of flagship products in recent weeks that continue to strengthen its revenue generation prospects. In addition, the company’s intellectual portfolio has received a significant boot on the company securing a second European patent.
A string of positive developments in recent weeks also continues to elicit strong institutional investor interest. Conversely, the company balance sheet has received a significant boost on FirstFire Global Opportunities investing in the company.
Vytex came down tumbling after hitting the $0.16 mark in February. After initially plunging to the $0.04 mark, the stock has once again bounced back and now looks set to make a run for the 52-week highs. The emerging uptrend is staring at the $0.08 mark as a critical resistance level.
A rally followed by a close above the $0.08 mark should open the door for bulls, who have been on the fence, to come back in and support further movements on the upside. The $0.04 mark is the immediate support level that short sellers will have to breach to continue pushing the stock lower.
Vystar is a developer and distributor of eco-friendly brands including Vytex Natural Rubber Latex. The company boasts of a proprietary technology for the production of Vytex NRL capable of reducing antigenic protein in natural rubber latex products.
Why is Vystar a Pullback Play?
Vystar is a potential pullback play after a major correction from all-time highs. Institutional investors taking note of the company also indicates there is some value worth pursuing in the stock. FirstFire Global Opportunities, an institutional investor, has consequently acquired some stakes in the company with a $200,000 investment.
With the investment, the institutional investor is permitted to participate in upcoming investment rounds for up to $200,000.
“It is almost unheard of for an OTC company and an exciting, positive development for Vystar — to have a lender retire a convertible note and then become an institutional investor on favorable terms. We are pleased to have such a vote of confidence and FirstFire’s support to help us move forward,” stated Steve Rotman, CEO of Vystar.
The investment also paves the way for Vystar to embark on a balance sheet cleaning drive as it seeks to retire toxic convertible debt. The new financing should also support the company in the execution of strategic initiatives, key among them being an expansion of the company and the pursuit of acquisitions.
Robust Product Pipeline
The $200,000 investment comes at a time when Vystar is in the process of accelerating production of RX3000 UV Light Purifiers for use in health care facilities. The hybrid air purifier combines germicidal ultraviolet UV lights with patented HEPA filtration to destroy over 99.7% of airborne viruses.
The FDA approved RX3000 is currently in use in over 400 hospitals. Priced at $5,000 a unit, the device is a key driver of the company’s revenues. In addition, the company has moved to diversify its revenue streams with the unveiling of RxAir UV Light air purifiers for fighting Flu, Colds, and airborne Germs.
Separately Vystar has secured a European Patent for its allergen city Natural Rubber Latex.
“This patent extends important intellectual property (IP) protection for Vystar in the production and distribution of Vytex to Europe using the Vytex formula to meet the growing demand for low protein NRL for products including balloons, examination, and surgical gloves,” stated Steve Rotman, CEO of Vystar.
Vystar has made important progress on the strengthening of its product line with the development of unique air purification devices. The company remains well positioned to generate significant revenues from Rx3000 UV Light air purifiers and RxAir UV light air purifier.
The stock eliciting interest from institutional investors underscores its prospects in the market going forward. Vystar should continue rallying and make new highs.
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Disclosure: We have no position in VYST and have not been compensated for this article.