Wednesday, August 20, 2014

Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN)

Achillion Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes anti-infective drug therapies in the United States and internationally. It focuses on developing combination therapies for the treatment of chronic hepatitis C (HCV) infection and resistant bacterial infections. The company’s drug candidates for treating chronic HCV infection comprise Sovaprevir, a NS3/4A protease inhibitor, which has completed a Phase IIa clinical trial; ACH-3102, a NS5A inhibitor that is in Phase IIa clinical trial; ACH-3422, a NS5B nucleotide polymerase inhibitor, which has completed preclinical studies; and ACH-2684, a NS3/4A protease inhibitor that has completed Phase Ia and Ib clinical trials. It has a license and development agreement with Ora, Inc. for the development and commercialization of ACH-702, an antibacterial drug candidate that is delivered topically or locally.
Take a look at the 1-year chart of Achillion (Nasdaq: ACHN) with added notations:
1-year chart of Achillion (Nasdaq: ACHN)
After trading between $2 and $4 from October through May, ACHN shot up to hit a new high of $8.50 in June, and then sold off into July. Since that time, the stock has rallied back up to the $8.50 resistance (red) and appears to have now formed the cup (blue) portion of a potential cup and handle pattern. Regardless if the stock forms the handle or not, the stock should be headed higher if it breaks through resistance.

The Tale of the Tape: ACHN may have formed the cup in a C&H pattern. A long trade should be entered on a breakout above the $8.50 level with a stop placed under that level.
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