Obalon Therapeutics, Inc. (OBLN Stock Report) is a penny stock that up until May 22nd, was trading at all time lows. So why did this become a penny stock to buy on Wednesday?
Obalon Therapeutics + Penny Stock News = 170%+
Seems like the perfect equation right? In the case of this penny stock, it triggered a massive rally in the market. What did Obalon announce? During the later part of the afternoon on May 21st – just one day prior – the company said it presented expanded clinical data from its large-scale commercial use study of its swallowable, gas-filled intragastric balloon system to treat obesity.
What Were The Results Of This Study?
The data showed real-world use of its “Obalon Balloon System.” The additional data collected demonstrated something interesting. It showed that there was significant weight loss in patients treated with the therapy in clinical practice. There was also a good safety profile according to Obalon.
“The Obalon Balloon registry is the largest endoscopic bariatric therapy registry series in the US. The additional data collected showed significant weight loss in patients treated with this therapy in clinical practice with a good safety profile. These results remain consistent with our previous publications.”Shelly Sullivan, M.D. Associate Professor, Medicine-Gastroenterology, Director of the Gastroenterology Metabolic and Bariatric Program, University of Colorado School of Medicine.
Is OBLN Stock A “Buy”?
Ask traders today and most would say that OBLN is a penny stock to buy. But with many stocks that run on penny stock news, it’s never a bad idea to exercise caution. Parabolic moves such as these tend to result in a similar move down as up. Heading into the lunch hour, OBLN stock has made another new high at $1.41.
Heading into the second half of the day we’ll be focusing on market momentum and other penny stock technical indicators like RSI and MACD to show potential. As you can see in the chart above, both of these indicators are suggestive of an “Overbought” stock. Can the stock move higher?