New Trade Alert: Arch Therapeutics, Inc. ( ARTH )
After my last alert on ARTH the company rallied more than 22% the day of my alert. Afterwards the company went onto rally more than 184% in 1 month.
ARTH, has demonstrated once again a bullish chart setup that I believe could provide us with enormous gains.
ARTH has recently experienced some consolidation after the massive 184% rally. This is completely normal after such a move. On Friday ARTH experienced a significant, what we believe to be, a green candle that may have possibly set in the low of the consolidation move.
That may mean that its clear skies ahead and ARTH may be setting up for a significant rally.
ARTH's RSI suggests significant undervaluation at 42 on the daily chart. In addition, this shows, based on historical trading, that there is ample upside opportunity for us to realize.
The chart also shows the sort of upward momentum that is currently driving ARTH forward. Valuation has now surpassed the 50 DMA of 0.291.
You can see this in daily volatility which is now pushing volume levels above average. Just recently ARTH traded with strong volatility, suggesting that there is a growth in investor interest towards the company.
As I said above, the technical setup under ARTH is ripe for some significant upside. Starting with valuation, we see that since hitting a 52-week high of 0.543, the play has pulled back as traders enjoy their profits. We can’t blame them for that, nor should we given the upside that this creates in the near term.
On April 25 ARTH announced that it has received a notice of allowance from the U.S. Patent Office for a broad method-of-use patent that covers systemically administering the Company's self-assembling technology for treating damaged extracellular matrix and leaky tight junctions.
ARTH followed up that announcement with news that it is set to present at PIONEERS 2016, hosted by Joseph Gunnar & Co., on Thursday, May 5, 2016 at 4:30 PM EDT.
President and Chief Executive Officer Terrence W. Norchi, MD will provide a corporate overview and meet with investors who are registered to attend the conference. The conference will be held at the New York Palace Hotel in New York City.
Both news items help form what is a very strong news profile for ARTH. Pair that with the breakaway chart currently underway and you have a perfect storm for strong near term returns.
ARTH is a medical device company developing a novel approach to stop bleeding (hemostasis) and control leaking (sealant) during surgery and trauma care.
The company is developing products based on an innovative self-assembling peptide technology platform to make surgery and interventional care faster and safer for patients.
ARTH is doing important work in a medical device space that is projected to hit $398B by the end of 2017. The US as always, is leading market share and presents the largest profit opportunities for players like ARTH.
Conclusion: ARTH delivered a solid 22% rally last time you saw it; the move this time could be potentially stronger.
Don't miss this and happy trading!