Situation and analysis
The American stock SGEN from the healthcare branch, in the area of biotechnology, is listed in the NASDAQ Composite. The longer-term price development is characterized above all by a tripling of the price in the year 2016. In chart 1, a good upward trend can be seen in the daily basis, running steadily above the rising SMA 200.
The last dynamic price increase has currently come right back down, without a trend break occurring in the process. In the last few days, there have now been stronger price rises. Only the recently partly increased trading volume with falling prices does not fit the picture here.
Outlook and opportunities
A glance at the subordinate picture of the hourly chart in chart 2 clarifies the price area around 50.50 dollars (support) and around 60.00 dollars (resistance) as key markers for trend-setting decisions. If the price breaks out above the high from 20.01.2016 at 60.25 dollars, this can initiate the ascents in the direction of 76.00 dollars.
In contrast to this, prices below 55.00 dollars represent a first warning sign. Closing prices beneath 50.73 would then definitively reverse the upward trend from chart 1.
For current long entries, a safeguard under 55.00 dollars is available. An entry with or after a breakout above 60.25 dollars could be hedged below 57.13 dollars, as long as no lower intermediate low arises before then.
One must always take company news and globally effective news into account.
Entry: option 2 around 58 dollars or option 1 above 60,25 dollars
Stop: option 2 below 55 dollars or option 1 below 57,13 dollars
Target: 76 dollars
Time horizon: mid-term
Disclosure of possible conflicts of interest:
At the time of publishing this analysis, the author is not invested in the securities and underlying assets discussed.
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.