2. Next, let's look at Theravance, a biopharmaceutical company, is engaged in the discovery, development and commercialization of small-molecule medicines primarily for the therapeutic areas of respiratory diseases, bacterial infections and central nervous system pain.
Theravance traded down 0.1% on Friday, closing down 5 cents to $28.65 per share.
- Friday's range: $28.23 - $28.99
- 52-week range: $25.11 - $42.96
- Friday's volume: 461,131
- 3-month average volume: 989,456
Theravance is also a rounded bottom breakout after it closed above the 50-day simple moving average for the last two trading days. Price action has been consolidating for the last week, so watch for a breakout of these levels on Monday, above Friday's high.
Theravance reported earnings on May 6, then traded to its 52-week low. It's now up 14% from that low. I'd look for an entry above the 50 on strength, above $28.32. I'd set a stop at about $27.89, which is a bit tight. But set the stop according to your risk tolerance.As with all rounded bottom breakouts, I target the 200-day simple moving average first, which is a big upswing of almost 22% from Friday's close. There is some overhead resistance, but the most compelling is at $34.06, which would also be a good target of 18% to the upside. There is declining volume on bearish days, which tells me that investors are looking for the bullish moves over the bearish moves. This trade may consolidate for a few more days before the breakout, so stay long until you see a confirmed sell signal, or a close below the t-line. 3. Now, let's look at Ventrus Biosciences, a development-stage specialty pharmaceutical company focusing on the late-stage development and commercialization of gastrointestinal products in the U.S. Ventrus traded lower on Friday by 1 cent, down 0.79%, and closed at $1.26 per share.
- Friday's range: $1.14 - $1.31
- 52-week range: $0.85 - $4.69
- Friday's volume: 1,306,784
- 3-month average volume: 596,155
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