UPDATE OCT. 15
The price breakout the channel with a long candle and large volume
The price reach the second target as it touched the resistance line @ $2.71 breakout but close below @ $2.70....
It was a very nice runup as written in the Technical Analysis books....
The momentum still very strong, the price might get some correction next week, it will be a nice to load more shares if it retreat to test back the upper channel line around $2.48
Enjoy the ride
click the chart to enlarge
$CBRX Columbia Laboratories, Inc. - PDUFA date of February 26,
2012 for PROCHIEVE for the reduction of risk of preterm birth in women
with short uterine cervical length in the mid-trimester of pregnancy.
The shares price dropped hard with the markets, but the pressure started after the NDA acceptance by the FDA as regular review 10 months and not a priority review as Columbia has voluntarily withdrawn its request for priority review.
We can see at the daily chart that it start trading in a horizontal channel between $1.95 & $2.50 , also the Bollinger bands get closer, tight & horizontal too while the RSI & the MACD are in a positive divergence and the Stochastics prepare to leave the oversold area and start a new move...
We saw yesterday the price bouncing back from the support line creating a "Bullish Hammer" at a support zone...that's a good sign as the buyers are coming back and buy the dip.
Start a Position @ $2.00 looking to recheck the upper channel line, with stop loss few points below the support line @1.95
Doubled the position @ $1.95
It might be a good start position as a the catalyst of $CBRX is 4 month away
Disclosure: Long $CBRX