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April 28, 2023
- Price action honing in on likely support at $200.13
- Bollinger analysis indicates upper Band® is at $207.25
In the midst of a month bullish trend, Yesterday's session put the brakes on the ongoing uptrend — an influx of sellers pushed the biotechnology company to session lows around $200.5 while establishing a $200.5 to $202.14 session range yesterday.
The stock has been trending positively for about 4 months. The biotechnology company now trading 42.53% above its 3-month low of $108.81.
The Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Seagen's upper Bollinger Band® is at $207.25, suggesting that a downward move may follow. In contrast, Seagen is approaching key support, around 63 cents away from $200.13. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
Despite the market lacking direction, technical chart analysis strongly suggests Seagen is positioned for a downward move in the near term.
Fundamental indicators – following a previous reading of 0.8%, Pending Home Sales in United States released yesterday at 14:00 UTC fell short of the 0.5% figure expected by analysts with an actual reading of -5.2%.
Meanwhile, mixed performances were seen by other health care stocks as AbbVie closed at $148.87 (down 8%). Eli Lilly and Company was up 3.74%. Thermo Fisher Scientific gained 1.86%, as it traded at $543.
Upcoming fundamentals: United States Core PCE Price Index (MoM) (Mar) is expected today at 12:30 UTC.
