• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

If You're Buying Bionano Genomics Know That It's Speculative Only

I have a problem with stocks that trade for pennies one day and then soar higher the next.
By BRUCE KAMICH
Mar 23, 2021 | 09:30 AM EDT
Stocks quotes in this article: BNGO

One caller during Monday's "Lightning Round" segment of Mad Money asked Jim Cramer about  Bionano Genomics (BNGO) : "Buy this one for speculation and only for speculation," said Crarmer about the company that provides a platform to analyze the long segments of genomic DNA and other biomolecules structural variations. Heady stuff. 

 
Let's check out the charts and indicators. 
 
In this daily Japanese candlestick chart of BNGO, below, we can see that BNGO was a "penny stock" until all of a sudden it wasn't. In just two months prices soared from less than a dollar to around $15 - pretty amazing. Prices gave up half the rally from late February into March and have been trading below the 50-day moving average line. The moving average line appears to be acting as resistance.
 
The On-Balance-Volume (OBV) line soared sharply from December into January and then went sideways with a slight drift lower. Overall the OBV line is suggesting that buyers of BNGO in December and January have largely stayed with those longs. If they have liquidated (taken profits) they have been very quiet about it.
 
The Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line for an outright sell signal. 
 
 
 
In this daily Point and Figure chart of BNGO, below, we see only a nearby price target of $10 or so.  
 
 
 
In this second Point and Figure chart of BNGO, below, we used weekly close only price data. Here the software is projecting the $39 area as a potential longer-term price objective.  
 
Bottom line strategy: I have a problem with stocks that trade for pennies one day and then soar higher the next. I like to see proper bases formed with signs of good accumulation like the OBV line rising for months. That is lacking on BNGO. Longer-term we might see prices go up four-fold from here but that seems like a speculation right now. A close below $7 weakens the chart.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Biotechnology | Science | Mad Money

More from Investing

3 Small-Cap Stocks With Big Dividends

Bob Ciura
Sep 30, 2023 7:00 AM EDT

These names provide shareholders with potential growth in addition to their dividends.

Here's Why Traders Are Cautious Despite Slowing Inflation

James "Rev Shark" DePorre
Sep 29, 2023 4:25 PM EDT

As we say to goodbye to a rough September, let's look what what's weighing on investor sentiment now.

Accenture Is Looking Vulnerable to a Correction: How to Play It Now

Bruce Kamich
Sep 29, 2023 2:13 PM EDT

Shares of the consulting company have turned lower from early September.

Okta: Does a New Technical Strategy Make Sense?

Bruce Kamich
Sep 29, 2023 12:50 PM EDT

The identity security management firm gets a quantitative upgrade.

Dip Buyers Should Check Out These 3 Stocks

Ed Ponsi
Sep 29, 2023 12:30 PM EDT

Let's go to the charts to create game plans for three names that have fallen into oversold territory.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:13 PM EDT BRUCE KAMICH

    8 Trading Rules from T. T. Hoyne

    You just read the header for this missive and prob...
  • 08:42 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How Elite Traders Make Big Profits
  • 02:58 PM EDT BRUCE KAMICH

    Classic Trading Rules From Bernard Baruch

    Bernard Baruch listed the rules (below) in his aut...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login