) is a biopharmaceutical company that provides drugs for the
treatment of multiple sclerosis, nephrotic syndrome, and infantile
What I Am Looking At:
- In late August, shares peak at an all-time high of
- A bearish head-and-shoulders pattern played out after hitting
a target of $55.
- Shares pulled back just over 20% from August peak.
- Shares are possibly catching support from the rising 80-day
moving average (purple line), which has had significance in the
- Late July's upside gap area could also add to the support
- Peak put open interest at the 55-strike could be a roadblock
for further declines in share price.
- Daily RSI (Relative Strength Index) is indicating oversold
- Short interest has been rapidly declining, which is an
indication that shorts are in cover mode.
- 18% percent of the float remains short.
- 10-day buy-to-open put/call ratio stands at 1.74, expressing
a near extreme in pessimism.
- Fundamentals look solid as quarterly revenue growth
(year-over-year) is 64% percent and quarterly earnings growth
(year-over-year) is 72%.
Looking for shares to resume uptrend from 80-day moving average
This article by
Tony Venosa, CMT,
was originally published on
Schaeffer's Investment Research
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.