Stock Technical Analysis: SPPI is a Wild Monkey
Written by Sidney on September 23, 2009
Here’s my response to a request for stock technical analysis of Spectrum Pharmaceuticals (SPPI), a commercial-stage biotechnology company with a focus on oncology, and develops and commercializes a portfolio of drug products.
From the stock chart below, you can tell that SPPI is finding some support at its 50 day exponential moving average after a steep correction in early September 2009. This moving average has served as an excellent support line over the past 8 months, and will likely continue to do so in the short-term.
Stock Technical Analysis of SPPI
What really worries me about SPPI is the volatility generated by news surrounding this stock. For example, on September 4, the company made an announcement about an FDA approval that sent the stock surging and then collapsing the next trading day. Such volatility tend to make technical analysis less useful because the stock is too unpredictable and news-driven. I usually tend to avoid such volatile stocks.
Nevertheless, if you must trade this stock, sell point is when the stock drops definitively below the 50 day exponential moving average. Buy point occurs when the stock rallies above its peak resistance of $8.15.
Good luck with this wild monkey!
Is this analysis useful? We want to hear from you - please leave your comments below! :)
Related posts:
Submit Reply
Here’s my take on KPPC: KPPC has had a decent rally from its Feb 2009 lows, but... (Nov 22, 09)