Ocugen (NASDAQ: OCGN) stock price has gone parabolic in the past few days as traders wait patiently for its quarterly results scheduled for Friday. The shares are quickly approaching the important point at $1 and are now hovering at their highest point since March 2023. They have soared by over 170% from the lowest point this year.
Ocugen earnings aheadOcugen is a biotech company that is developing vaccines, gene therapies, and cell therapies. Like all companies in the industry, its stock surged during the COVID-19 pandemic as demand for vaccines jumped. Recently, however, the shares remains 94% below their highest point during the pandemic. Its market cap has dropped from $3 billion to $243 million.
The next important Ocugen news will come out on Friday when the company publishes its financial results. While the company is not expected to show any revenues, statements by the management could have a major impact on the stock.
The most recent results showed that the company’s net loss came in at $14.2 million in the third quarter. That was a major improvement from the $21.3 million it made in the same quarter a year earlier. Its nine-month loss also narrowed to $53.6 million.
Looking at its balance sheet, Ocugen ended the quarter with over $53.5 million in cash, down from $90 million a year earlier. Therefore, these results will provide more colour about the state of its balance sheet now that its cash is dwindling.
In the past results, the management noted that they would consider gene therapies partnerships to raise cash instead of selling more shares. I believe that the company will take advantage of the current stock surge to raise funds either through equity or convertibles.
Most importantly, Ocugen will likely give an update about its pipeline. Particularly, it will provide an update on OCU 400 in patients with RHO.
Ocugen stock price forecast
The daily chart shows that the OCGN share price has staged a strong bullish trend in the past few days. It has risen in the past three straight days and has formed several gaps along the way. Ocugen shares have moved above the key resistance point at $0.720, its highest swing on January 3rd.
The stock has moved above the 50-day and 200-day Exponential Moving Averages (EMA). Further, the Percentage Price Oscillator (PPO) and the Stochastic Oscillator have continued soaring.
Therefore, the outlook for the stock is modestly bullish now that it is approaching the resistance at $1. A break above $1 will see it rise to the next level to watch will be at $1.25. The alternative scenario is where it retreats and retests the support at $0.720, its highest point in January.
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