Inverted Head & Shoulders Pattern In Neovasc Suggests 18% Upside

By Unknown Tuesday, January 12, 2016
Shares of Neovasc dropped 30% in 2015 on concerns of slow enrollment for their Phase I Tiara trial, relative valuation of competitor acquisitions, and concerns over the CardiAq litigation. This week Neovasc received FDA approval to include its new 40mm sized Tiara for the Phase I trial, which increases the patient population and should speed up enrollment. But the litigation with CardiAq (now owned by EW) still represents an overhang for the stock. Not enough information is available to conclusively tell which company is farthest ahead in the race to develop a commercially available mitral heart valve, but Neovasc's data is impressive.

Technically, shares of Neovasc have formed a bullish inverted head & shoulders. The measured move price target points to $5.50, representing potential upside of 18% from current levels.

Neovasc is a relatively illiquid stock. I am bullish on the fundamentals of Neovasc, and hold shares. Not trading this one, but worth noting the inverted head & shoulders formation.
The Wall Street Fox

The Wall Street Fox utilizes fundamental and technical analysis to generate investment ideas. TWSF holds a MBA, and is currently preparing for the Chartered Market Technician (CMT) designation.

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