Ocugen Inc (NASDAQ:OCGN) Stock Sees Heavy Selling Pressure: A Good Buy Now?

Over the past year, many stocks have come into focus and managed to clock substantial gains on the back of the involvement of the underlying companies with COVID 19 vaccines.

Market Stats

On Wednesday, OCGN stock moved down 5.90% at $7.65 with more than 13.14 million shares, compared to its average volume of 31.29 million shares. The stock has moved within a range of $7.65 – 8.15 after opening trading at $8.10.

Key Analysis

One such company is Ocugen Inc (NASDAQ:OCGN). Last year, it emerged that the company partnered with the Indian company Bharat Biotech for the latter’s COVID 19 vaccine Covaxin and that led to a significant rally in the Ocugen stock. As per the provisions of the partnership, Ocugen was going to be responsible for advancing the development of the vaccine in Canada and the United States.

More importantly, Covaxin recently got approval from the World Health Organization as well and while that may be a major positive, there are other factors to consider. First and foremost, Ocugen is late to the vaccine game despite the fact that cases are on the rise.

On the other hand, Moderna and Pfizer have already cornered vast portions of the North American market at this point in time. Hence, even if demand for vaccines rise again, it is unlikely that people are going to opt for Covaxin. As a result, even if things might appear favourable for the bulls, the truth might not be as cut and dried.

Traders Corner

OCGN stock is trading below the 20-Day and 50-Day Moving averages of $9.27 and $8.60 respectively. Moreover, the stock is trading below the 200-Day moving average of $8.33. The stock is down 12% in the past month.