GW Pharmaceuticals Opens Lowers, Has Huge Recovery
Brochstein noted that "the market is initially focused upon the setback," however, "the company also announced positive news on the more important development program, Epidiolex and also added another patent for CBD and CBDV in treating epilepsy, now at 14 different families of patents in total."
According to Brochstein the "company will have preliminary data from at least one of its late-stage Epidiolex trials by the end of 2015. Epidiolex is the most important aspect to GWPH, so this setback could provide a good entry into the name as the stock has pulled back to the Q4 lows in pre-market trading before bouncing to recent support levels as the call began."
From a technical perspective, David observed that a bearish "'Ascending Triangle' pattern's breakout had immediately met its 61.8 percent extension" back on November 20, "which satisfied the pattern's buying pressure. The next session failed to extend higher, so the breakout was not confirmed -- or, as it could be labeled at that point in the pattern's development, the ‘false’ breakout."
After falling more than 5 percent, GW Pharmaceuticals recently traded at $78.42, up 10 percent.
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