So what has caused such plummet? I've carried out a research and found out. 😀
I mean look at the weekly chart on the right. It literally screams for bulls.
Left chart shows significant levels for each stop of supposed bullish wave based on fib sequence of initial green candle on the bottom.
Fib channel is mounted to the parallel angle of decline on top and bottom patterns.
Combo of these two tools will allow to trace the level at which the pullback will be on its reversal stage.
- Stock has declined due to the simple fact that FDA has requested the specific requirements for the drug labeling.
- By the way, The drug (Pimavanserin) has already been approved by FDA for quite long time.
- So in general, regulatory setback was in post-marketing requirements.
- The situation wasn't as tragic as market has reacted to.
- The problem has a simple solution. In other words, the company should just mobilize their effort to change the label to the one asked by FDA.
- Moreover, If you check the production pipeline, you'll see that it's not the only drug the company is making.
- Definitely waiting for a pullback, or I even dare to call it a recovery.
I mean look at the weekly chart on the right. It literally screams for bulls.
Left chart shows significant levels for each stop of supposed bullish wave based on fib sequence of initial green candle on the bottom.
Fib channel is mounted to the parallel angle of decline on top and bottom patterns.
Combo of these two tools will allow to trace the level at which the pullback will be on its reversal stage.
Comment:
Typical breakout from a triangular formation.
Another bullish sign!