Genetic Technologies Limited (ADR) (NASDAQ:GENE) – May remain rangebound in $4-$10

Genetic Technologies Limited (ADR) (NASDAQ:GENE), a molecular diagnostics company, had an excellent session yesterday which ended with a gain of 33.51%. The volume exploded to 12.7 million against the average of 2.7 million, the highest volume for the last month. The stock has made it a habit of making 30-50% gains in a single session and frequently losing days of that same magnitude. The volatility has expanded out of all bounds since last February, when it took just 4 weeks to rally to $11 levels from the bottom of $1.15, a gain of nearly 10 times. The next few weeks saw the stock losing most of that gain but yesterday marked the end of that corrective phase.

Volume Price Trend Indicator (VPT) of GENE

Recently, Mr. Eutillio Buccilli has been appointed by Genetic Technologies Limited (ADR) (NASDAQ:GENE) as the new CEO, as the tenure of Mr. Alison Mew expired on the last day of 2014. The rise of Mr. Buccilli has been real swift as he had joined the company less than a year back as the Chief Financial officer. Just a few months later, he was given the responsibility of the Chief Operating officer too, culminating in the post of CEO now. His senior management experience of more than 35 years in the financial and other services, I the various blue chip companies like General Electric, Computer Science Corporation etc. is expected to benefit the company a lot.


Technically, the biggest sign of hope for the bulls comes from the volume pattern, which shows signs of accumulation in the last 2 months. In the period of 2013-14, the stock declined in a very orderly manner from $15 to $1 levels. On the other hand, the price action in 2015, despite the huge volatility, shows the bulls fighting hard. Very aggressive investors can try to accumulate small positions on the dips.

Cook Laurie

Cook Laurie

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.