since the big drop in feb this year the stock has been ranging, i.e. going sideways essentially although it is moving up and down as it does so. it has two support lines, @ 10- and 10+ and one resistance @ around 16. this type of channel is known as 'harmonic' channel.
it has achieved two touchdowns at each support level the last of which was very recent where the touchdown was at the 10- level.
the stock has dwelt for a number of months at these lawly levels, this at a time when the pharma sector has been doing well.
lets hope the stock will pick up from its last touchdown. critically it should then breake out of r16 to prove its mettle.
if the existing two touch downs fail to work their magic on this stock, then there is one last chance left, of a 3rd touchdown at each of the specified supports. if those fail then the stock may end up ranging for an extended period of time at its current levels.
the above has been said purly from a ta point of view. as a business, though, pharma stock, particularly small ones, are very very news sensitive. one drug passing a stage of its development, that are often many, could send a stock flying, conversly one snipet of bad new could bury a stock. the ta analysis above assumes no big news breaking up. news of a breakthrough of a drug or similar type of news would override the ta analysis.
