Biotech Sector Forms A Double-Bottom | BioVaxys Shares Spike 60% On Heavy Volume
Based in Vancouver, BioVaxys Technology Corp. is a British Columbia-registered, clinical stage biotechnology company that is developing viral and oncology vaccine platforms, as well as immuno-diagnostics. The Company is advancing vaccines for SARS-CoV-2, SARS-CoV-1, and a pan-sarbecovirus vaccine based on its haptenized viral protein technology, and is planning a clinical trial of its haptenized autologous cell vaccine used in combination with anti-PD1 and anti-PDL1 checkpoint inhibitors that will initially be developed for Stage III/Stage IV ovarian cancer. Also in development is CoviDTH®, a diagnostic for evaluating the presence or absence of a T cell immune response to SARS-CoV-2, the virus that causes COVID-19. BioVaxys has two issued US patents, and multiple US and international patent applications related to its cancer vaccines, antiviral vaccines, and diagnostic technologies. BioVaxys common shares are listed on the CSE under the stock symbol “BIOV” and trade on the Frankfurt Bourse (FRA: 5LB) and in the US (OTCQB: BVAXF).
June was a brutal month across markets and asset classes. The S&P 500 was down more than 7% for the month, and many sectors were down double-digit percentages (energy, materials, etc.). One of the few bright spots was the performance of the biotech sector; the XBI Biotech ETF was up more than 10% for the month, making biotech (and healthcare more generally) the best performing sectors in the entire stock market.
The XBI declined more than 60% from its Q1 2021 peak above $170 to its recent low near $62. In addition, the XBI daily chart has formed a double-bottom at the March 2020 COVID crash lows:
XBI (Daily)
Relative Strength and Money Flow has moved into bullish territory as price action has recently experienced a notably bullish change of character; high volume up days have been interspersed with shallow, low volume pullbacks.
In the small cap Canadian biotech space we have recently seen a significant uptick in insider buying activity.
And in the last couple weeks we have seen a small but noticeable uptick in trading volume including a few large rallies in individual Canadian micro-cap biotech names.
BIOV.CA (Daily)
BioVaxys (CSE:BIOV), one of the sponsors of this website, saw its shares surge 60% on 30x average daily trading volume yesterday (7/4/2022). BIOV's daily chart exhibits multiple bullish momentum divergences (CCI and RSI not confirming lower lows in price) that often closely coincide with major price lows.
While one day or even one month does not reverse a 15+ month downtrend, we are seeing an assortment of constructive signs across the biotech and healthcare sectors. Historically, the biotech and healthcare sectors have outperformed during recessions and we are beginning to see some notable signs that this outperformance may have already begun.
Disclosure
Author owns BIOV.CA shares at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by BioVaxys Technology Corp.
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