Tuesday, March 26, 2013

VIVUS, Inc. (NASDAQ: VVUS)

VIVUS, Inc., a biopharmaceutical company, engages in developing and commercializing therapies to address unmet needs in obesity, sleep apnea, diabetes, and sexual health. The company offers Qsymia, a drug for the treatment of obesity as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of 30 or greater, or 27 or greater in the presence of at least one weight-related comorbidity, such as hypertension, type 2 diabetes mellitus, or high cholesterol; and STENDRA for the treatment of erectile dysfunction. It also completed Phase II clinical studies of Qsymia for the treatment of obstructive sleep apnea; and Qsymia for the treatment of type 2 diabetes. The company has an agreement with Mitsubishi Tanabe Pharma Corporation for the development and commercialization of avanafil, a PDE5 inhibitor compound for the oral and local treatment of male and female sexual dysfunction. VIVUS, Inc. was founded in 1991 and is headquartered in Mountain View, California.
To analyze the company's stock for potential trading opportunities, please take a look at the 1-year chart of VVUS (VIVUS, Inc.) below with my added notations:
1-year chart of VVUS (VIVUS, Inc.) Similarly to yesterday's “Big Stock”, VVUS has been trending sideways for the last (5) months. As the stock has bounced along, it has formed a couple of key price levels to watch. The first is the $10 level (blue) that has already acted as support on several occasions. The other is the $12 level (red) that VVUS is currently pulling away from.
The Tale of the Tape: VVUS appears to be on its way back down to $10. A long position could be entered at the $10 support or on a break above the $12 resistance, with a stop placed below the level of entry. A short play could be made on a break below $10 or on a rally back up to $12.

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