Like any other type of stock, penny stocks react well to good news. However, penny stock news can trigger way more movement than your typical company’s stock. Because of this, trading penny stocks can result in large sums of profit. Biotech penny stocks have some of the best potential for large jumps in price. This is thanks to the many types of positive news they can report. This can range from FDA approvals to the advancement of clinical trials. The more positive news around a stock, the more profits investors could see.
Who’s The Company?
Outlook Therapeutics Inc. (OTLK) is a biotech penny stock whose primarily focused on creating and selling monoclonal antibodies. This company’s main product is the ONS-5010 and has made a lot of progress toward getting it on the market for sale. It is aiming to be the only approved bevacizumab in the healthcare market.
On May 15th Outlook’s share price closed at $0.9104. The company announced its Q2 highlights and everything has been on the up and up for their share price ever since. Some highlights included the initiation of ONS-5010-002 Phase 3 clinical trial, a $28.4 million public offering. Other highlights focus on the appointment of Dr. Jennifer Kissner as SVP of Clinical Development. As a result, the stock price has risen to $3.20. It has also hovered around that price, attempting to make new highs.
“The financing we secured in the equity offering announced in April has provided us with the capital needed to complete enrollment in our two Phase 3 clinical trials. This was an important step in our strategy and to maintain the positive momentum behind our clinical development program for ONS-5010.”Lawrence A. Kenyon, President, Chief Executive Officer and Chief Financial Officer
In addition to the strong influx of news, Outlook has another strong factor on its side. Technical analysis. Both the RSI and MACD indicators are still in fair territory. Neither has entered “overbought” or “oversold” area. Additionally, the stock has attempted multiple times to break a historically strong resistance point at $3.20. If this penny stock can turn that resistance into a support line, could Outlook Therapeutics be the next penny stock to buy now?