In responding to the naysayers.....no one is claiming that we are currently in a strong uptrend..
The thesis is clear....and the thesis is that there are Fundamental and Technical indications that we may break out of the long term downtrend and/or enter into a new phase of sustained uptrend. Hence, the thesis carries a bullish outlook.
Here is the case for that thesis via both fundamental and technical considerations:
Fundamental Case MEM is transitioning from a product development company to product commercialisation company.....implied in that transition is a transition from past high risk, high cost activities (product R&D).....to the current position of moderate risk, high reward activities (i.e commercial roll-out agreements).
MEM's flagship product is a proven winner, declared "best in class" in a recent clinical trial and displaying "clear competitive advantages in performance, quality and operating costs".
These are just some examples of current market opportunities. There are more which i have not listed, like the IVF animal sector, or the fact that we have distribution agreements with Vitrolife which also cover Canada and NZ.
Once again this is just a short summary of fundamental opportunities on the horizon.
Technical Case
As the Fundamentals show a transition from R&D to commercialisation, so do the Technical indicators.
A double bottom is a reversal pattern. On the MEM weekly chart, a clear double bottom is in formation.
We also have a significant increase in trading volume in recent weeks.
If we zoom out on the weekly chart, we see that the down trend has slowed, a base is forming and trading volume has significantly increased.
we also have a bullish divergence forming.
Next, the technical indicators will reflect the same sentiment as the Fundamental Case above, and as the chart patterns within the chart.
The Weekly Relative Strength Indicator (RSI) is in a clear uptrend over time and the RSI moving average has just recently broken the RSI 50 mark.
We have now dipped below RSI 50, but a pull back is often normal market structure before the uptrend resumes.
The Moving Average Convergence Divergence (MACD) on the weekly is showing weakening bearish momentum...........and a potential shift to a new bullish trend is developing as it approaches to the zero line. We have currently dipped below the zero line, but a pull back is often normal market structure before the uptrend resumes.
The trend has developed over notable time, and IMO is likely to continue.
I reiterate that the thesis is that there are Fundamental and Technical indications that we may break out of the long term downtrend and/or enter into a new phase of sustained uptrend.
Of course there are no guarantees....and no one can predict the future, but i am presenting my opinion/analysis on the current state of affairs, and i stand by that thesis.
MEM Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
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