Truth be told, Echo Therapeutics Inc. (NASDAQ:ECTE) doesn't look like a particularly impressive stock right now. At $2.92 per share, ECTE is just trading right around where it was a few days ago, not to mention a few weeks ago. And, without any real "news" from the company in months, it's tough to think the market's going to be getting excited about the stock anytime soon. When you take a closer look at Echo Therapeutics though, a few subtle-but-compelling clues start to appear.
ECTE is, in simplest terms, a biopharma name that's developed a handful of specialized medicines, delivery devices, and monitoring devices. Its flagship product - if it has one - is the Symphony glucose monitoring systems for diabetes patients, though it's also working on a needle-free drug delivery product as well. For all intents and purposes, Echo Therapeutics Inc. isn't bearing revenue right now; most of its' (and investors') hopes right now rest on the Symphony trial currently underway in Europe. Those results should be unveiled during the current quarter, with a filing for European approval later in Q4.
Those details are academic at this point, however. What matters most right now is the way the chart's been acting of late, and the way it acted today.
As was noted, at first glance ECTE doesn't look particularly compelling. It's not really gone anywhere since the big plunge in June that stemmed from chatter about a secondary offering (which came to pass, by the way). And, today's effort to finally blast past the key 100-day moving average line has ultimately failed, with shares pulling back under that mark. The cat, however, is out of the bag. The bulls have shown they're interested in buying into this stock and paying a fairly lofty price for, and they've shown they're willing to do so even in the absence of news. The next try (or maybe the one after that) should be one that "sticks", carrying Echo Therapeutics Inc. shares above the 100-day average on a more permanent basis.
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That being said, it must be noted that the lead-in to today's temporary surge makes it much easier to view today's action in a bullish light. We saw a higher high from ECTE in September, and a higher low from the stock with the low from just a couple of days ago. Though volatile, the undertow has already revealed itself to be a net-bearish one. Between today's high volume and early strength, we're all but over the hump. That first close above the 100-day moving average line (which could still be today) should get the ball rolling all the way back to the $6.00-ish area.
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