Ocean Power Technologies (NASDAQ:OPTT) Could Bounce Back Above the Moving Averages

[[tagnumber 0]] [[tagnumber 1]] [[tagnumber 2]]Ocean Power Technologies (NASDAQ:OPTT) stock has been bouncing around the 10– and 20–day moving averages this month while today the chart suggests it could jump again toward the upper Bollinger band. The company is still making only losses, thus it looks extremely risky as a long–term investment.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]OPTT jumped 6.86% in the last trad[[tagnumber 7]]ing session, closing the market at $0.71 per share. Trading activity was very low, thus a sudden boost in the volume could send the share price high above the 10–day moving average after the last few sessions in which volatility was lower.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]The company is developing a proprietary PowerBuoy system to transform the mechanical energy created by the movement of ocean waves into electricity. In April, it completed a stage gate review with the Department of Energy related to its Power Take–Off technology that can be used with both small and large scale PowerBuoys.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]Despite the progress in the development of the technology, OPTT is still very far away from making significant sales of its products and realizing a profit. According to the latest quarter report, the company is getting revenue to the largest part by government agencies in the form of grants. These are by far insufficient to cover the expenses and additional cash needs to be secured through loans and stock sales.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 18]][[tagnumber 1]] [[tagnumber 2]]As with any development–stage company, dilution risks are huge. OPTT has an outstanding at the market offering facility under a shelf registration statement filed in 2013. For the entire 2014 around 3.3 million new shares were issued which brought the share price from over $3 to the current levels. Of the $40 million authorized under the facility, $18.2 million are still available for issuance, meaning more downside potential for OPTT share price.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]]