Agios Pharmaceuticals Has Been Plummeting
While the overall stock market has been pulling back over the last three days, the biotech space has been taken out to the woodshed.
Considering that biotech stocks were once among the hottest in the entire market, it's not too surprising that once the levy broke, investors started running toward the exit.
As a gauge, the iShares Biotechnology ETF (NASDAQ: IBB) is down almost 8 percent in just four trading days from its peak of $375.
Due to this, there are many biotech stocks that are breaking down through key supports. One in particular that seems to be breaking down is Agios Pharmaceuticals, Inc.(NASDAQ: AGIO).
Agios Pharmaceuticals focuses on the development and commercialization of therapeutics in the field of cancer metabolism and rare genetic disorders of metabolism in the U.S.
Related Link: Is Intercept The Next Biotech To Break Out?
The company has a collaboration and license agreement with Celgene Corporation to discover, develop and commercialize disease-altering therapies in oncology.
Here, one can review the one-year chart of Agios with the added notations:
After breaking through its $50 resistance back in September, Agios almost tripled in value. The stock peaked in January and has been on a steady decline since.
Starting in December, Agios had tested $101 on four separate occasions. Hence, $101 became a key level of support for the stock. The stock finally broke that support level and may move much lower, overall, from here.
The stock closed Tuesday at $101.48. It fell more than 8 percent on Wednesday to close at $92.86.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you'll be around for the next trade. Capital preservation is always key.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.