Market Overview

Lipocine Still Can't Clear $6

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Licopine Inc (NASDAQ: LPCN) shares are trading higher by $0.06 (2 percent) at $5.47 in Monday's session. Although the issue has risen 40 percent over the past two weeks, the double dose of good news on Friday has failed to nudge the issue over the key $6 level.

Here are reasons why $6 is turing out to be a key technical level. First of all, $6.17 was the low on June 28, the day before it swooned to $3.10. The catalyst for that decline was a response letter from the FDA, noting deficiencies in a dosing algorithm on one of its labels.

Related Link: Lipocine Showered With Good News Recently

Therefore, all the buyers trapped in the issue from that day forward are looking to trim their losses as the issue traded down to $2.51 on June 29 before staging a slow arduous rebound.

Also, buyers who purchased the issue on the cheap may be booking some profits.

The significance of the $6 level was evident on Friday as the issue peaked at $5.90 and backed off to close the session at $5.41. Today's higher open was snuffed immediately ahead of that high at $5.75.

For now, long-term investors may want to watch Friday's close of $5.41, as that represents the highest close of the recent rally. Its current intra-day low rests at $5.36, which is only a nickel from Friday's close.

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