‘Minnow’ share could prove a good catch

TL;DR

Clovis Oncology, a small pharma company specializing in cancer treatments, experienced a significant decline but may see a rebound after forming a major base. Target price could reach $24 or even surpass its previous high of $116.

Transcript

hello it's john burford with chart of the week for monday the 22nd of march and this week i'm covering a s fairly small u.s farmer clovis oncology it started life in 2009 and specializes in novel cancer treatments and here's the weekly chart made an all-time high here of 116 in september 2016. that was on the back of some anticipated drug results a... Read More

Key Insights

• 😀 Clovis Oncology specializes in novel cancer treatments but has faced the common challenge of small pharma companies with many failures and disappointing results.
• 🤘 The stock has shown promising signs of a potential rebound, including a major base formation, momentum divergence, and recent positive news.
• ✋ Technical analysis suggests a possible test of the $12 resistance level and a target price of $24, with the potential for higher gains if their drugs prove to be successful.
• 💄 Investors should consider the volatile nature of the pharmaceutical industry and carefully assess the risks before making investment decisions.

Questions & Answers

Q: What is the history of Clovis Oncology's stock performance?

Clovis Oncology initially reached an all-time high of $116 in September 2016 but experienced a rapid decline to $30. Temporary spikes occurred due to promising drug results, but the stock has been trying to form a major base since October 2019.

Q: What factors indicate a potential rebound for Clovis Oncology?

The stock's decline followed a one-two-three long and strong pattern, with a final low and a momentum divergence. These factors suggest a likely rebound. Additionally, a recent move up on encouraging drug trial news indicates positive potential.

Q: What is the current price trend for Clovis Oncology?

After a decline and forming a major base, the stock recently had a move up on favorable news. It is currently showing a scolded cat bounce, which is a normal reaction to touching a major line of support.

Q: What is the potential target price for Clovis Oncology?

If the stock breaks above the $12 resistance level, a target price of at least $24 can be expected. Additionally, if the drugs they produce become blockbusters, the target price could potentially surpass the previous high of $116.

Summary & Key Takeaways

• Clovis Oncology reached an all-time high of $116 in September 2016 but faced disappointment and rapid decline afterwards.

• Promising drug results led to temporary spikes in the stock, but overall, it has been trying to form a major base for over a year.

• Recent encouraging news from a drug trial has caused a price increase, potentially leading to a test of the $12 resistance level and a target price of $24.