ReWalk Robotics, Ltd. (NASDAQ: RWLK)
Stock of ReWalk Robotics surged more than 126% on news of an unprecedented adoption of its technology by the US Department of Veterans Administration (VA). ReWalk designs and produces robotic exoskeletons that give wheelchair bound patients the ability to walk. In an extraordinary move by a federal agency, the VA announced its intent to cover the cost of ReWalk’s robotic walking technology for all veterans that meet a modest qualifying threshold. The VA’s move is likely to prod the insurance industry, which has been slow to cover the cost of a treatment that was approved by the FDA more that a year ago.
“This historic policy will provide access to our life-changing technology for thousands of veterans across America,” said ReWalk CEO Larry Jasinski. “We want all U.S. veterans with a spinal cord injury to know that they now have a path to securing their own ReWalk Personal exoskeleton system. The policy outlines a sound process to educate, train and importantly, to provide individual veterans with a ReWalk Personal device so that they may walk at home and in the community. We expect this landmark national policy will substantially improve the health and quality of life of many veterans in the years ahead,” Jasinski added. Yahoo Finance
RWLK Technical Analysis
ReWalk stock was first offered on public markets at $30 per share in September 2014. The stock put in an all-time high of $43.71 on the second day of trading and has since mostly been in a slow grind lower before finally reaching an all-time low of $5.55 just last week. RWLK has a low float of 6.5 million shares and the average daily volume has been near 35,000 shares. Thursday’s move came on an astronomical 202 times average daily volume. The stock gapped up from Wednesday’s $6.00 close to open at $7.82 and climbed all morning on heavy volume to a high of $13.59 or 127% increase. Traders were buying RWLK while the broader market was selling off. RWLK looks very bullish, but the market is not helping. For a long, RWLK needs both a strong market and a volume move above $11.20. If the stock heads north, there could be resistance at $11.50, $12 and $12.30. A move through $12.50 could quickly get to $13.30 and through Thursday’s high of $13.49 has open space to $15.50. In the other direction support sits at $10.50, $10.20, and $9.40. Below that could begin a gap fill to $6.00. As always trade plans should be framed within context of the broader markets. Thursday was an ugly sell day and after-hours trading continued the down pressure. Trade what the market gives you.
About ReWalk Robotics
ReWalk Robotics Ltd is an Israel-based medical device company. The Company is engaged in designing, developing and commercializing exoskeletons that allow wheelchair-bound individuals with mobility impairments or other medical conditions the ability to stand and walk once again. The Company has developed and is continuing to commercialize ReWalk, an exoskeleton that uses its patented tilt-sensor technology and an on-board computer and motion sensors to drive motorized legs that power movement. The Company offers two ReWalk products: ReWalk Personal and ReWalk Rehabilitation. ReWalk is a product that can fundamentally change the health and life experiences of users. ReWalk controls movement using subtle changes in the user’s center of gravity. Google Finance