Breaking Out: Regenerative medicine play Orthocell's run might just be getting started

Breaking Out is a technical analysis-fuelled, short ‘n’ sharp take on chart-busting ASX stocks. Each week, Steve Collette – head of Collette Capital in Melbourne – narrows in on something that’s caught his eye.

Orthocell (ASX:OCC)

Orthocell appears determined to end 2024 on a high.

For most of the year, the company’s stock price remained relatively stagnant, trading almost entirely within a narrow range of 35 to 41 cents.

However, September 9 saw a close at 44 cents – its first decisive move indicating potential for a positive shift in shareholder fortunes.

Early October saw a successful retest of former resistance (now support), after which the company’s momentum surged, underpinning the interest in its regenerative medicine offering.

The sharp price movements in early October created several gaps on the chart that remain unfilled.

While gaps are often expected to close, it’s worth remembering that as per all price action this is never guaranteed.

In late October, Orthocell raised $17 million at 60 cents per share.

Despite some brief post-raise consolidation, the stock did not trade below the offering price – another strong signal of underlying demand.

This week’s announcement of sales commencing in Singapore has propelled the stock to break past previous highs.

A close above 73 cents could set the stage for significant gains, the first subsequent target being the round figure of $1.

Given the performance of the biotech sector in 2024, Orthocell might just be getting started…

Collette Capital offers IMA services to wholesale clients only.

The IMA has returned 17.89% p.a. net of any fees as at end October 2024 since January 2015.

Learn more at www.collette.capital

Collette Capital is a Corporate Authorised Representative (CAR: 128443) of Sanlam Private Wealth ( AFSL 337927 ), and only provides general advice.

Collette Capital advise that they and persons associated with them may have an interest in the above securities.

The views, information, or opinions expressed in the interviews in this article are solely those of the contributing author and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.

At Stockhead we tell it like it is. While Orthocell is a Stockhead advertiser at the time of writing, it did not sponsor this article.