A bullish crossover of the MACD indicator suggests the beginning of a new uptrend for Aastrom Biosciences, Inc. (ASTM). On Tuesday volume jumped to nearly three times the 3-month average without any news from the company. Volume, often interpreted as the lifeblood of a chart, measures strength behind price movement in technical analysis. With the price breaking above its 50 day moving average line (blue), Tuesday's share volume confirms the 'technical breakout' - a move through or above a significant level of resistance.
More specifically, Tuesday's session lent way for shares to climb above not one, but two levels of notable resistance. The primary breakout occurred once the price broke channel resistance (pink). We made a note of that in real-time here
. As mentioned, a break above the 50MA followed suit (the secondary breakout). Additionally the RSI indicator turned upwards and broke above the 50 mark, another indication of strength behind the price rally.
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StemCells Inc. (STEM
, +1.83%) and Cell Therapeutics, Inc. (CTIC
, +2.36%) were among other stem-cell companies to gain in trading on Tuesday. This data leads me to believe that Aastrom Biosciences' more-than-modest jump in stock price (+16.6%) was fueled by more than just momentum in the market. One source pointed to a newscast praising Aastrom Biosciences in saving the lives of two individuals using their stem cell remedies.
Aastrom Biosciences, Inc., a regenerative medicine company, engages in developing autologous cell therapies for the treatment of severe and chronic cardiovascular diseases. The company's autologous expanded cellular therapy technology uses single-pass perfusion to produce human cell products for clinical use.
As of their last quarterly filing
, Aastrom Biosciences had total cash of $14.47M. However, an offering
closed on December 15th, 2010 revealed the company's entitlement to an additional $20.5M. As the offering was chiefly responsible for the declining share price (then) it largely eliminates the risk of another offering diluting shareholder value now and in the near-term.
I am long ASTM.