With just a quick glance, Rosetta Genomics Ltd. (NASDAQ:ROSG) doesn't necessarily look all that exciting. The stock's merely been waffling in a range since October (after a mini-meltdown in the middle of last year), while the company's failed to cue up any highly-compelling catalysts like it did in May of last year following news that its miRview mets2 assay would be covered by Medicare, just a few days after it has been awarded a critical patent in the United States.
The news itself was good - good enough to drive ROSG shares to a (albeit temporary) quadruple digit gain in just a couple of weeks... helps along by the possibility of Rosetta Genomics Ltd. and its novel technology being a buyout target. As is so often the case though, the market's eyes were bigger than a company's foreseeable opportunity. ROSG spent the next several months drifting lower, if not outright falling.
Nothing seemed to change for quite some time, but the news spigot was turned on again a few days ago after Rosetta Genomics announced some success with its test comparisons of cancerous and non-cancerous profiles. In simplest terms, its microRNA profile work was proving to be an effective means of identifying patients who are at higher risk of bladder cancer.
It wasn't until Friday, though, that ROSG finally convinced the market that it was a buy-worthy stock again. The chart below says all that needs to be said.
The budding breakout actually goes all the way back to November, and the $3.88 level. That's the point where Rosetta Genomics shares started to move higher again, but more telling is the fact that the $3.88 area was also the floor/support level last August; the bulls have drawn a line in the sand there. That was when the turnaround really started.
It wasn't until Friday, however, that ROSG sealed the deal by breaking above the upper side of a long-tern wedge shape (framed in orange). That same move also carried the stock above the 100-day moving average line, and although we've seen a move before - in early January - this time around the effort looks much more sustainable. There was a nice volume increase, and the move's been gestating for a while.
Traders can probably expect more volatility from Rosetta Genomics Ltd. in the foreseeable future, but at least it's going to be bullish volatility.