How The Future Looks For Last Week's Biggest Losers: Futu, Regulus Therapeutics And More

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Last week, the five biggest stock market losers declined between about 36% and 26%. Below is a look at each stock and what they may have in the cards going forward.

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Regulus Therapeutics Inc RGLS lost 36.18% of its value between Oct. 11 and Oct. 15 and on Monday was trying to bounce up slightly from the 47-cent level. Regulus has been trading in a steep downtrend since reaching a 52-week high of $2.32 on March 12.

Most of the loss was caused on Oct. 13 when Regulus gapped down about 25%. The gap is good news for the bulls because gaps fill 90% of the time, so it is likely the stock will trade back up to the 74-cent level in the future.

  • Bulls want to see Regulus consolidate the plummet lower by trading sideways on low volume and then for big bullish volume to come in and drive the stock back up above a resistance level at 55 cents, which would allow Regulus to begin filling the gap. Above the level, there is further resistance at 63 cents and the 70-cent mark.
  • Bears want to see big bearish volume drop Regulus down below the 47-cent area. Below the level, there is further support at $0.47 and the 52-week low of 45 cents.

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Xinyuan Real Estate Co, Ltd XIN was the second biggest loser, declining 31.55% last week to an all-time low of $1.01. On Monday the stock was trying to get a small bounce going but the bounce was hindered by low volume.

Xinyuan’s fall on Oct. 12 and Oct. 13 paired with the slight bounce north between Oct. 14 and Monday has settled the stock into a potential bear flag on the daily chart. The flag will be negated if Xinyuan can regain support of the eight-day exponential moving average otherwise, if the bear flag is recognized, Xinyuan could plummet to new lows where there is no support in the form of price history.

  • Bulls want to see big bullish volume come in and push the stock back up above a resistance level at $1.54. If Xinyuan can regain the level as support it has room to trade back up toward the $2 level.
  • Bears want to see a reaction to the bear flag on big bearish volume to drop Xinyuan down below the $1 mark.

NeuroOne Medical Technologies Corporation NMTC fell 27.36% last week, with most of the losses on Oct. 13 when the stock closed down 29%. On Monday the stock made a new low of $2.84 before bouncing up slightly from the level.

Like Regulus, NeuroOne has a gap left above on the chart, which makes it likely the stock will trade back up into the $3.97 range in the future. It could be an extended period of time before this happens, however, because last week’s decline has still not put NeuroOne’s relative strength index (RSI) into oversold territory.

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  • Bulls want to see continued sideways consolidation on low volume and then for big bullish volume to come in and break the stock up over the $3 level. If NeuroOne can regain the area as support it has room to trade back up toward $3.39.
  • Bears want to see increasing bullish volume push NeuroOne down toward the all-time low of $2.49. If the stock is unable to hold the level as support, NeuroOne has no lower support in terms of price history.

PAVmed Inc PAVMC declined 27.2% last week with most of the losses occurring on Oct. 14. On Monday, the stock made a new low of $4.40 before bouncing up slightly, albeit on low volume.

The bounce was likely due to a reaction from the lower ascending trendline of an ascending broadening wedge formation on the daily chart. A broadening wedge demonstrates increased volatility and disagreement between the bulls and the bears. The pattern is generally regarded as being bearish over the long term, but as long as the stock reaction bullishly to the bottom of the pattern it provides an entry point with a clear stop.

  • Bulls want to see PAVmed continue to hold the support of the lower trendline and for increasing volume to push the stock back up over the $4.90n level. If PAVmed can regain the area as support it could trade back up toward the $5.50 mark.
  • Bears want to see big bearish volume come in and push PAVmed down below the lower trendline of the pattern and for bearish momentum to drop the stock down toward $3.45. Below the level there is support at $2.70

Futu Holdings Ltd FUTU has been trading in a steep downtrend since reaching a June 29 and June 30 high of $181.44. Last week, the stock took another bad turn and fell 26.89% further before bouncing up from the $58.20 level on Monday.

Monday’s slightly higher prices are likely just an oversold bounce, because Futu’s RSI reached oversold territory at the 25% level. The stock is also trading in a range between $51 and $84 where there is not a great deal of price history to support Futu.

  • Bulls want to see continued big bullish volume drive Futu back up toward the $84 level. If the stock can regain the area as support it has room to trade up toward $95.
  • Bears want to see big bearish volume come and push Futu under the $51 level. If the stock loses the area as support it could revisit $37 before potentially bouncing.
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