The share price of Admedus, a specialist healthcare company in which the writer has been invested for more than three years, today spiked 20% higher from last week’s close at 32.5 cents. It gapped higher at the open on news that a new ADAPT product, VascuCel, designed to be used for vascular repair in patients undergoing carotid endarterectomy for the prevention of strokes, had obtained permission from the FDA for marketing in the USA from next month.
Today’s highest price equalled the last high on the 22/7/2016 at 55 cents prior to a capital raising at 33 cents. The closing price was 3 cents easier at 52 cents.
Noteworthy was the trading volume of 38,527,300 shares when on most days it is less than 3 million shares. This suggests a major player(s) entered the market today. The average price paid today (VWAP) was 47.47 cents.
Over the past three years, the share price has been unmoved by many equally promising news releases but judged on the strength of today’s jump, buying will continue. From a TA perspective, it will be bullish if support at the mid-point of yesterday’s gains holds.
As always readers should not base their investment decisions on the basis of TA alone. Rather they should discuss their intentions with a qualified financial adviser.