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ZOM stock forecast: Uncertainty looms for Zomedica as shares trade at 1-year low

ZOM stock forecast: Uncertainty looms for Zomedica as shares trade at 1-year low
Jordan
Major
5 months ago
3 mins read

Zomedica Corp. (NYSEAMERICAN: ZOM), a veterinary health firm specializing in developing diagnostic and therapeutic solutions for domestic pets, saw a climb of 3.61% in its most recent trading at $0.29 on January 31.

Analyzing its overall performance in the stock market it has been below average, and recent developments have not been particularly encouraging, with both the medium and short-term outlooks indicating a downward trend.

ZOM has been trading in a $0.27 – $0.38 range for the last month, and it is presently trading towards the lows of this range. Notably, the penny stock is trading below its 20-day, 50-day, and 200-day simple moving averages (SMA), which stock trading investors typically use to identify an uptrend or downtrend, suggesting bearish momentum.

ZOM 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here

Despite ZOM’s 52 week range between $0.26 – $2.91, it is currently -68.48% below its 200-day SMA line with the last bullish momentum experienced at the end of August. Not to mention, ZOM is currently making a new 52 week low, which is a very bearish signal.

A resistance zone at $0.34 is formed by a combination of multiple trend lines in numerous time frames, while resistance is also observed at $0.36 in the daily time frame.

The volume has also significantly reduced, and ZOM does not now provide a favorable setup due to the price movement being a little too unpredictable to locate a firm entry and exit point; consequently, it is prudent to wait for a period of consolidation first.

ZOM acquisition

Elsewhere, Zomedica acquired Pulse Veterinary Technologies (also known as PulseVet), and this acquisition may be worth looking into if you’re looking to speculate on the ZOM stock.

Using high-energy sound waves, the PulseVet technology method claims to decrease inflammation, enhance blood flow, and speed up bone and soft tissue formation.

Vice President, General Manager of Zomedica, and Chief Executive Officer of PulseVet, Adrian Lock, stated:

“We are excited about the opportunity to build on our momentum by leveraging the fully trained Zomedica field sales force to continue to grow the business.” 

Institutional investors now own around $35 million, or 14.70% of ZOM stock. With the company’s earnings results expected to be released on February 25, it is reasonable to assume that the ZOM stock will take advantage of any good news that comes its way. 

It has been one of the most widely watched meme trades or stocks in the market in the last year.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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