Sellas Life Sciences Stock May Have Broken Out Of Pennant Pattern: What's Next?

SELLAS Life Sciences Group Inc. SLS shares rallied Tuesday as retail traders try to push the stock higher.

The stock is likely continuing its momentum after the company secured a U.S. patent for cancer combo therapy. The stock was trending on social media sites Tuesday and is forming what technical traders call a pennant pattern.

Sellas Life Sciences Daily Chart Analysis

• Sellas Life Sciences looks to be forming what technical traders call a pennant pattern — and potentially broke out of the pattern to the upside.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock looks to be bullish.
• The price may find support near each of these moving averages in the future.

Key Sellas Life Sciences Levels To Watch

• The stock looks like it was able to break out of a pennant pattern. If the pattern is broken, the stock may see a push higher.
• The pennant pattern occurs after the stock sees a large gain, then trades sideways for a time, condensing the price between previous highs and lows before a breakout. 
• A breakout above pattern resistance may push the stock higher while a break below pattern support may push the stock lower.

What’s Next For Sellas Life Sciences? 

Bullish technical traders would like to see the stock break out of the pennant pattern and see an upward move. Consolidation after a breakout could let the stock continue further. 

Bearish technical traders would like to see the stock break out of the pattern to the downside. A cross below the line connected by the lows may bring about a large dropoff.