Jazz Pharmaceuticals (JAZZ) - Get Jazz Pharmaceuticals plc Report has been all over the map on Wednesday following news that it will acquire GW Pharma (GWPH) - Get GW Pharmaceuticals Plc Report for $7.2 billion.
Currently, shares are down about 0.5%. However, the stock was down as much as 7.2% at Wednesday’s low and up 6% at the session highs.
On the flip side, GW Pharma has jumped more than 46% on the day on the news. The move sent shares to all-time highs as well.
Wall Street still seems undecided on whether the deal is good news or bad news for Jazz, indicative by the up-and-down price and wide daily trading range.
Of course, GW Pharma bulls will likely argue that it was a good move by Jazz. Let’s look at the chart to see the key levels.
Trading Jazz Pharmaceuticals
Look at the daily trading range in Jazz stock today. It bounced between a number of key levels, retracement and moving averages.
Specifically, it’s holding near the 50-day moving average and above the 100-day moving average. It’s also holding just above the 2020 pre-coronavirus resistance near $154.
How we do trade this big range?
From here, bulls will want to see the 100-day and 21-week moving averages hold as support.
To lose these marks will also put Jazz below Wednesday’s open and potentially put the session’s low in play near $146. Below that and $140 is possible.
On the upside, shares are struggling with the 50-day moving and are below the 10-week moving average. I would like to see the stock regain these marks, as well as $159.
North of $160 and perhaps shares can retest the 21-day moving average and Wednesday’s high near $167. Above that mark would put the $171 highs on the table, followed by a possible move to several upside extensions.
Remember, Wednesday’s action is volatile and a bit sloppy. Let Jazz stock show which direction has the strength and allow it prove itself above or below some of these key measures.
Below $150 is not good for bulls but above $160 is.