Co-Diagnostics Stock Sees Movement After Company Says Products Unaffected By Omicron Variant

Co-Diagnostics Inc. CODX shares gapped higher Monday, but have since fallen and are now trading lower.

The company said today its COVID-19 diagnostics are not affected by the omicron variant. The variant contains over 50 different mutations, none of which Co-Diagnostics said are expected to interfere with the company's suite of COVID-19 PCR diagnostic assays.

Co-Diagnostics shares were trading down 2.09% at $9.36 late Monday morning. 

Co-Diagnostics Daily Chart Analysis

• The stock saw a jump higher, but fell slightly lower in what technical traders call an ascending triangle pattern.
• The $11 level has been an area of strong resistance in the past, as the stock has been unable to cross above this area. Connecting the lows of the chart show the stock is in an uptrend. This higher low trendline may continue to hold as support in the future.
• The stock trades above the 50-day moving average (green) but below the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
• The 50-day moving average may act as an area of support, while the 200-day moving average may hold as resistance.
• The Relative Strength Index (RSI) looks to be in a period of consolidation the past few weeks moving sideways and now sitting at 55. This shows the stock is seeing slightly more buying pressure overall.

What’s Next For Co-Diagnostics?

Bullish traders are looking to see the stock continue to trade within the pattern for the next couple of weeks. If the stock can continue to hold above the higher low trendline for a while, it may see a breakout over resistance when squeezed between the higher low trendline and resistance.

Bearish traders are looking to see the stock fade lower and be able to fall below the higher low trendline. The stock being unable to continue to form higher lows is a bearish sign, and a possible hint that a longer term trend change is coming.