Chart of the Day: World Heart (WHRT)

World Heart (Nasdaq: WHRT) makes innovative heart-pump devices. Last week, a fourth device was successfully implanted at the University of Utah as part of a 160 patient clinical trial. This news cheered investors as the stock staged a dramatic turnaround on huge volume (see chart below). Sharing in that frenzy was one company director who purchased a large chunk of the company’s stock.

The prevailing theory is that insiders know more about what’s going on in their company and it’s considered a bullish sign if they’re buying their own stock. Currently, the stock is trading near $3.50, up from its $2 low yet still half of its all-time closing high near $7. Major support/resistance levels can be found at the 50 cent increments (e.g., $3.00, $3.50, $4.00, etc.) with minor levels at the 25 cent values (e.g., $4.25, $4.75, etc.). Note that this stock is not optionable.

WHRT Chart

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