Biotech Wreck? A Technical Look At OvaScience
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
OvaScience Inc (NASDAQ: OVAS) shares were nearly unchanged at $29.56 in Wednesday's session. The issue has fallen from its March 25 close ($49.80) to as low as $27.87 in today's session.
The maker of drug fertility treatments has been one of the most volatile issue on Wall Street since August 2014. Over this period of time, it soared from its August low ($9.35) to its all-time high last month at $55.69.
The explosive rally was predicated on the positive results of its fertility treatments. Now that the actual results have become muddled, investors are not waiting for the results to be clarified. Instead, they are exiting the issue with reckless abandon.
Related Link: Oppenheimer: We Still Love OvaScience
Despite being defended by Oppenheimer before Wednesday's open, the issue made a new low for the recent slide by nearly $2 (Tuesday's low of $29.51 vs. Wednesday's low of $27.87).
Since making that low, it has rebounded into the $29 handle and is attempting to reclaim Tuesday's closing price ($29.59).
It should be noted the volume over the last three days has been declining since it traded 2.7 million shares on April 2, perhaps signaling the selling pressure may be abating soon.
Editor's note: At time of publication, shares traded at $29.99, up 1.35 percent on the day.
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