Monday, August 15, 2011

$CLSN Technical Analysis: Found the support, now the reversal starts

$CLSN enjoyed from a lots of hype and love from the Biotech investors lately, but also suffered from a big drop the same as all the biotech sector after the big sell-off  in the US markets, despite the good PR about the completion of enrollment of 600 patients.
The big drop find a good support @ the weekly horizontal line $2.71 touching and breaking out the line 4 times but always close above it, giving us the feeling that this point is a good support, beside the 200MA in the area using as resistance and support.
The RSI & the Stochastics are deep in the oversold zone changing the direction of the lines and preparing for a runup.

I think, we can see the price in an uptrend as more as the markets do so, The first point that used as a resistance several times is $3.10 and did so today. we have to see the break out that point with a larg volume too to ensure the trend and direction.
It's important to feel the markets move, as if the markets turn positive, CLSN will have a wild run back to the last the investors will be back to the market and to the loved and preferred Bio stocks.

Disclosure: Long CLSN

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