Ocugen (OCGN) is working on the latter part of an inverse head-and-shoulders reversal pattern that originated with a double-bottom on the daily chart at $2.87 on 1/24/22 and 1/28/22. It touched a long-term low at $2.16 on 3/8/22 following news of a EUA denial from the FDA on its request for Covaxin use in children 2-18 years old. After a $4.03 high on 3/21/22, the initial reversal effort was rejected. It hit a near-term low of $2.59 on 4/19/22, which appears to have completed the top of the right shoulder on the reversal pattern.
This type of bottom reversal setup is common following a sharp decline like the one OCGN has experienced since a medium-term high of $17.65 on 11/3/21.
The current pattern mirrors the longer-term inverse head-and-shoulders pattern in the #HSGX/#OCGN chart that dates back to the $4.80 low on 1/2/2019. I have noted the upper resistance line where breakout should occur. With momentum and volume through that resistance level, we could see a very swift return toward the medium-term resistance line from the $18.77 (2/8/21) high through the $17.65 (11/3/21) high. The company recently announced that it had acquired commercialization rights for Covaxin in Mexico, which likely means heavy-handed players are loading up in the tight range before a move up.
