Acadia and Facebook Rise, Twitter Slumps, More To Come
The stock market continues its advance in 2018, and this time it was the Biotech group that led the market higher after Celgene announced it was acquiring Juno, and Sanofi buying Bioverativ. It led a massive breakout in the group, the one we had been eagerly waiting for and talking about happening. Today we take a look at Acadia, Twitter, and Facebook
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Acadia Pharmaceuticals even managed to show some signs of life, with the stock rising by nearly 8 percent on the day. Shares have not broken out, so don’t get too excited yet, but they are surely nearing one. We can see how close that breakout came and it will not take much of a follow-through tomorrow to see that breakout happen.
Facebook shares took another step to recouping those losses after the news feed revamp. Shares are approaching $188, and it will be essential to see how the stock responses when it gets there. Will it fill the gap and move lower, or will it continue to rise?
Volume has been strong, and well above the 3-month moving average, while the relative strength index is nowhere near overbought or oversold. Plus the stock also has the benefit of a strong stock market, and more importantly a healthy technology sector. It would seem a rise to $188, and above is likely coming.
Twitter shares appear to be in an interesting scenario and on the cusp of a reasonably significant breakdown. The chart below shows how the stock has broken a critical uptrend, which dates back to mid-October. But it also sits on a considerable support level as well.
Should Twitter’s stock fail and fall below $23, it seems the stock could be on its way lower back to $18.
Back later with Netflix.
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Michael Kramer and the clients of Mott Capital own shares of ACAD, CELG
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