A Couple Key Levels To Watch In iBio's Stock
iBio Inc. (NYSE:IBIO) shares gapped higher Wednesday morning after the company announced it successfully resolved its lawsuit with Fraunhofer USA. The resolution confirms iBio’s ownership of certain intellectual property related to plant-based biopharmaceutical production.
iBio is a biotech and biologics contract manufacturing organization.
iBio Daily Chart Analysis
- iBio shares look to have recently broken out of what technical traders could call a falling wedge pattern.
- The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue). This indicates the stock has seen bearish sentiment as of late.
- Both of these moving averages may hold as an area of resistance in the future.
Key Levels To Watch
- The stock was falling the past couple of months forming a falling wedge pattern before the stock broke out Wednesday and moved higher.
- Breaking out of the falling wedge pattern could mean that the stock starts uptrending soon.
- One thing to be wary of, is after breaking out, the stock was unable to hold any of its gains and is now down on the day.
Bullish technical traders would like to see the stock start to move higher and build higher lows on the daily chart. Higher lows on the daily chart could signal the trend is changing to bullish. Bulls would like to see the stock cross over both moving averages as well.
Bearish technical traders are happy to see that the stock was unable to hold the gains from the gap and would like to see the stock start falling back to where it came from.
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