Exactly a month ago I penned some bullish thoughts on Generex Biotechnology Corporation (OTCMKTS:GNBT). I knew interest in the stock - and therefore interest in my optimism - was minimal. Yet, opportunity is opportunity. If GNBT is ready to move higher, then I have to do my job and point it out.
Well, I really, really hope you were one of the few people who read and heeded my words regarding GNBT then. Though it took a while to catch fire, today's 40% pop from the stock is rewarding patient investors. (You're welcome, by the way.) More important than that, today's surge has carried Generex Biotechnology shares above a key ceiling. With a big hurdle out of the way, the stock's apt to keep rolling higher... a lot better than it had been able to muster before today.
The nearby chart tells the tale. Since January (and for the first time in months), Generex Biotechnology Corporation shares have been working on a rebound. The challenge has been the stumbles it's suffered just when it looked like it would stage a breakout. Persistence pays off, however, and the breakout effort from late May kept GNBT within striking distance of the big line in the sand... the key 200-day moving average line (green). Now that it's been hurdled, the psychological tide is at least now 51% bullish. Translation: Look for the path of least resistance to be a bullish one.
So what's the underlying news behind the move? After all, for the rally to keep rolling as well as it is today, it sure would help if new investors felt compelled to pile into the stock.
Surprisingly, there's not a direct prod for today's strength. Generex filed an S1 yesterday, which is a precursor to fund-raising. The company also announced it would be co-hosting a conference call with the Antigen Express advisory board. The S1 form is a procedural announcement, which could just as easily be interpreted in a negative light, as it points to dilution. The conference call should be interesting, but will likely only be informational, telling the market what some investors already knew. So, directly, there's nothing that explains the sudden bullishness we're seeing for GNBT. There's still a clue in the fact that the stock's now on a roll, however.
While the rally may lack some hard-hitting news, it's clear the market is ready to be bullish on the stock. This new rally tells us traders are looking for a reason to be bullish. That may well be the best and longest-acting catalyst of all.
Whatever the reason, the chart's made a textbook reversal pattern, and there's a ton of room for Generex Biotechnology shares to keep riding.
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