Idenix Pharmaceuticals

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Nearest Resistance: $8

Nearest Support: $4.30

Catalyst: FDA Decision

>>5 Stocks Under $10 Set to Soar

Idenix Pharmaceuticals ( IDIX) is getting shellacked today, after announcing that the FDA was placing a traial for its lead hepatitis C compound on hold. While Idenix's compound didn't have any issues, a similar compound under trial from Bristol-Myers Squibb ( BMY) did cause a serious health issue in at least one patient. The similarities between the drugs are enough to suspend IDIX's contender -- and send shares down 30% today.

Idenix is the prototypical falling knife here. Today's gap down is a big move lower for shares, but it's not necessarily any sort of a bottom at this point.

Opportunistic buyers should wait for shares to catch a bid before trying to jump on a bargain opportunity. The nearest meaningful support level is the stock's 52-week low at $4.30.

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