Puma Biotechnology, Inc., a development stage biopharmaceutical
company, focuses on the acquisition, development, and commercialization
of products for the treatment of various forms of cancer. Its drug
candidates include PB272 (neratinib (oral)) for the treatment of
advanced breast cancer patients, non-small cell lung cancer patients,
and patients with HER2 mutation-positive solid tumors; and PB272
(neratinib (intravenous)) for the treatment of advanced cancer patients.
The company is also developing PB357, an orally administered agent that
is an irreversible tyrosine kinase inhibitor that blocks signal
transduction through the epidermal growth factor receptors, HER1, HER2,
and HER4. It has a license agreement with Pfizer, Inc. for the
development, manufacture, and commercialization of neratinib (oral),
neratinib (intravenous), PB357, and related compounds.
Take a look at the 1-year chart of Puma (NYSE: PBYI) below with added notations:
After its big drop in June and July, PBYI started trading sideways
over the next month. While in that sideways move, the stock has formed a
common pattern known as a rectangle. A minimum of (2) successful tests
of the support and (2) successful tests of the resistance will give you
the pattern.
PBYI’s rectangle pattern has formed a resistance at $97 (red), and an
$80 support (green). At some point the stock will have to break one of
the two levels.
The Tale of the Tape: PBYI is trading within a
rectangle pattern. The possible long positions on the stock would be
either on a pullback to $80 or on a breakout above $97. The ideal short
opportunity would be on a break below $80.
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