Chembio Diagnostics Inc (NASDAQ:CEMI) stock Turns Volatile: Should You Ignore?

Not too long ago, the Chembio Diagnostics Inc (NASDAQ:CEMI) stock has gone on a strong rally but yesterday the stock seemed to take a bit of a breather. As a matter of fact, the Chembio stock actually suffered from a slight decline.

While that is the case, it should not be overlooked that over the course of the past week, the stock is still up by as much as 23%. There was no news about the stock yesterday but the rally in the stock had actually been triggered last week after Chembio announced that it bagged a purchase order from Bio-Manguinhos worth as much as $28.3 million for its COVID 19 tests.

The tests are going to be delivered to the Brazilian company through the course of 2021 and it marks a significant new milestone for both Chembio as well as for its product.

The antigen test from the company can detect COVID 19 infection within a period of as short as 20 minutes and that too by using methods that are minimally invasive. The order is part of the initiative from the Brazilian Ministry of Health to control the spread of the COVID 19 infection in the country.

Market Reaction:

On Monday, CEMI stock fell 3% at $2.97 with more than 12.59 million shares, compared to its average volume of 9.71 million shares. The stock has moved within a range of $2.9300 – 3.4700 after opening the trade at $3.10. Over the past 52-week, the stock has been trading within a range of $2.0600 – 8.7500.