Shares of Genedrive PLC (LON: GDR) are down 59.8% from their February highs, and many investors are wondering when the shares shall recover and rally higher?
The good news is that the company’s shares have been trading above the 61.88p support level show below since April as the buyers keep stepping up to defend it, but there is not enough bullish momentum for a rally.
Genedrive shares rallied briefly after Indian authorities approved its SARS-CoV-2 Kit for distribution in the country amid rising coronavirus cases.
The company is likely to generate significant revenues from India once it starts distributing its coronavirus test kits in the country, making its prospects very bullish.
However, investors appear unimpressed with the company’s latest milestones, given the company’s weak performance in the last financial year.
As I have pointed out in past articles, Genedrive has significant partnerships with Beckman Coulter to secure future revenue streams.
The company also has a partnership with Mountain Horse Solutions in the US, giving it access to the American military contracts that could generate massive revenues for the company in future.
Genedrive seems relatively undervalued at current prices, and bullish long-term investors may find its price very attractive. I would buy the company’s shares in anticipation of the support level holding and a future rally.
However, a break below the support level would invalidate the bullish setup until the price is back above the support now turned resistance zone.
Genedrive share price.
Genedrive shares are down 59.82% from their February high of 163.50p to their current trading price of 65.7p.
Should you invest in Genedrive shares?
Genedrive shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Genedrive shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
