Aveo Pharmaceuticals (AVEO) stock prices are showing a sell opportunity for traders who are looking to jump in the ongoing downtrend. The priced off its lows around 1.40 earlier this week and is showing a possible bounce up to the 1.60 mark before resuming its drop.
The MACD indicator is turning up from the oversold region, indicating that buyers may be in control of stock price movement. The sell opportunity could present itself when AVEO reaches the former support at the 1.60 level.
Take note that the price is moving below the two moving averages, namely the 50 SMA (simple moving average) and the 200 SMA. The shorter-term SMA is moving below the longer-term SMA, which means that the price is in for more declines.
AVEO Sell Opportunity Forecast
Further declines in stock prices of AVEO could lead to a test of the previous lows at 1.40. A break below this level is another sell opportunity to add to the short position and take advantage of the strong downtrend.
Biotech companies have been seeing share prices decline in the past few trading sessions, as Infinity Pharmaceuticals and Mediwound Ltd. have also lost ground and manifested sell opportunity signals on their charts. Do take note though that Aveo Pharmaceuticals did gain rights to AV-203, which is a clinical-stage ErbB3 inhibitory antibody candidate. However, this failed to provide support for stock prices.
Michael Bailey, the company’s Chief Business Officer noted that the recent rights to AV-203 allows them to develop innovative therapy that might later on provide a boost to AVEO share prices. In this case, the stock price could break past the 1.60 mark and trade as high as 2.00 if their recent venture achieves successful results and positive feedback.
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