My recent love affair with Neurometrix Inc. (NASDAQ:NURO) hasn't exactly been a veiled secret. I first pointed out this diabetes-diagnostics stock was working on a technical breakout effort in early October, and I penned two more bullish-progress reports on NURO in November. Yet, the Neurometrix rally is still in its infancy, when you take a step back and look at the bigger weekly chart.
For those not familiar with it, NURO makes diabetic-neuropathy equipment. Neuropathy is, in simplest terms, damage done to nerve cells due to a chronic ailment. Diabetes is one such ailment, causing a specific form of neuropathy. Neurometrix Inc. has designed and now manufactures and sells two pieces of medical equipment to treat diabetes-born neuropathy... the NC-Stat/DPN Check, and the Sensus device. The NC-Stat measures the extent of (or existence of) neuropathic damage, while the Sensus device uses electrotherapy to reduce or eliminate pain in diabetics' lower legs and feet.
The hardware is secondary at this point, however. Oh, the Sensus and the DPN Check devices remain the meat and potatoes for the company, and is the long-term core any stock-related commentary that could be made. Right now, however, the big news is the encouraging shape of the Neurometrix chart, which has gone from good to great over the course of the past month or so.
If you happened to catch my very first commentary (and/or any of the subsequent commentaries) on NURO, then you may recall this stock signaled a brewing breakout by (1) crossing above the 100-day moving average line for the first time in months, and (2) by pushing above a key falling, straight-line resistance. I pointed out more technical progress from Neurometrix Inc. a couple more times in November. You can see how that progress got started, and then followed through, ever since I made the initial call.
So what? It's a decent daily-chart breakout, but the effort may be coming to a close soon. That's just it. While the daily chart of Neurometrix may look like it's already petering out (even today's bullish surge has given up most of the ground it's gained), taking a step back and looking at a weekly chart of NURO underscores how this past month's action is not only a short-term phenomenon, but also a long-term paradigm shift for the better. Take a look.
Almost needless to say, this is the best progress and the most bullish interest we've seen for Neurometrix Inc. in years. It's also the first time in years we've seen NURO trade above the 200-day moving average line (green) in years. It is, in simplest terms, a new era for the company and the stock.... the chart's redirection is too stark and too persistent to be much else.
The catalyst was growing credibility and marketability for the company's devices, though presentations at a handful of industry trade shows didn't hurt. Thing is, that credibility and name-recognition can only grow in the future.
Bottom line? Take the bullish technical clues form NURO at face value.
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