InterMune, Inc. (NASDAQ: ITMN)

InterMune, Inc., a biotechnology company, engages in the research, development, and commercialization of therapies in pulmonology and orphan fibrotic diseases. The company focuses on therapies for the treatment of idiopathic pulmonary fibrosis (IPF), a progressive and fatal lung disease. It markets Pirfenidone, an orally active small molecule drug for the treatment of adults with mild to moderate IPF under the Esbriet name in the European Union. The company's Pirfenidone is also in Phase III clinical trials for the treatment of IPF in the United States. In addition, it offers Pirfenidone under the Pirespa trade name for the treatment of IPF in Japan; Pirfenex trade name in India; and Shanghai Genomics in China. InterMune, Inc. was founded in 1998 and is headquartered in Brisbane, California.

To review InterMune's stock, please take a look at the 1-year chart of ITMN (InterMune, Inc.) below with my added notations:

After selling off from March until August, ITMN has tried to form a base while consolidating within a rectangle during the most recent (2) months. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For ITMN, the rectangle pattern has formed a $10 resistance (navy), which was also a prior support level, and an $8 support (red).