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Frequency Therapeutics Plunges On Study Setback: Technical Levels To Watch

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Frequency Therapeutics Plunges On Study Setback: Technical Levels To Watch

Frequency Therapeutics Inc. (NASDAQ: FREQ) stock imploded Tuesday amid the company's announcement that its interim FX-322 Phase 2a results showed that four weekly injections did not demonstrate improvements in hearing measures versus a placebo.

The stock was down 76.81% at $8.42 at last check. freq5min3-23-21.png

Frequency Therapeutics Short-Term Chart Analysis: The 5-minute chart above shows the stock immediately started dropping after the announcement.

The stock was able to find a bottom at the $8.75 mark. This area is a place where a trader could find support in the future.

In the short term, the stock may find resistance near the $14 level. This area is speculatively based on an area where the stock previously attempted to bounce, but was unable to do so. 

The stock is trading below both the 200-day moving average (blue) and the volume-weighted average price (pink). This gives the stock short term bearish sentiment.

The stock may find short-term resistance near these indicators.

freqdaily3-23-21.png

Frequency Therapeutics Daily Chart Analysis: The daily chart above shows the stock was trading with $30 as support before the implosion. This area may be a resistance in the future if the stock is able to make it back to this level.

Long-term speculative support comes at the same area as short-term support, near $8.75. This is the only area traders have seen a bounce so far in the chart.

The stock trades below the 200-day moving average, indicating long-term bearish sentiment. The stock may find resistance near this indicator.

 

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