Arrowhead Research Corporation, a biopharmaceutical company, develops
targeted RNAi therapeutics in the United States. The company’s product
candidate comprise ARC-520, an RNAi-based therapeutic that has completed
a Phase 1 clinical trial for the treatment of chronic hepatitis B virus
infection; and Adipotide, which is in Phase I clinical trial for the
treatment for obesity and related metabolic disorders. Its platform
technologies include Dynamic Polyconjugate platform, a RNA delivery
system that addresses multiple organ systems and cell types, promotes
multi-log gene knockdown, and induces endosomal escape; and Homing
Peptides platform, a library of short peptides.
Take a look at the 1-year chart of Arrowhead (Nasdaq: ARWR) below with the added notations:
ARWR had an awful March and April just like most biotech stocks.
Since the May low, the stock appears to have formed a double bottom
(green) price pattern. The pattern is as simple as it sounds: Bottoming,
rallying up to a point, selling back off to a similar bottom, and then
rallying back up again.
As with any price pattern, a confirmation of the pattern is needed.
ARWR would confirm the pattern by breaking up through the $15.50
resistance (blue) that has been created by the double bottom pattern.
The Tale of the Tape: After trending lower into May,
ARWR has formed a double bottom price pattern. A long trade could be
entered on a break above the $15.50 resistance with a stop placed under
that level.
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