ADMA Biologics stock has pulled back to its bullish 200-day moving average
Pharmaceutical concern ADMA Biologics Inc (NASDAQ:ADMA) has been consolidating above familiar pressure at the $16 region since mid-January. A breakout could be on the way, however, as the stock just came into contact with a historically bullish trendline.
Per Schaeffer's Senior Quantitative Analyst Rocky White, ADMA has come within striking distance of its 200-day moving average after a lengthy period above it (defined by White as 80% of the time over the past two months and 8 of the last 10 trading days). This has occurred five other times over the last three years, after which the stock was higher one month later 80% of the time with an average 21.2% gain.
From its current perch at $15.61, a move of similar magnitude would put ADMA at $18.91 -- much closer to its Nov. 11 record peak of $23.64. Year over year, the stock is outperforming with a 200% lead.
Short covering could provide tailwinds as well. Though short interest has been slowly unwinding, it still represents 5.8% of the stock's available float, or over five days' worth of pent-up buying power.