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Possible Bearish Inside Day Candle Pattern Detected for Salix Pharmaceuticals (NASDAQ:SLXP)

Published on Tue, 01/29/2013 - 08:29
By Adrienne Chilton

Analysts have spotted a possible bearish inside day candle pattern in Salix Pharmaceuticals (NASDAQ:SLXP) based on the price action in the company's shares. Yesterday's price range of $46.64 and $47.68 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Salix Pharmaceuticals may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Salix Pharmaceuticals, Ltd. develops and markets prescription pharmaceutical products for the treatment of gastrointestinal diseases. The Company's COLAZAL product is an anti-inflammatory drug used for the treatment of mildly to moderately active ulcerative colitis.

Salix Pharmaceuticals (NASDAQ:SLXP) has potential upside of 11.2% based on a current price of $46.92 and analysts' consensus price target of $52.17. The stock should discover initial support at its 200-day moving average (MA) of $46.00 and subsequent support at its 50-day MA of $42.91.

In the past 52 weeks, Salix Pharmaceuticals share prices have been bracketed by a low of $37.52 and a high of $55.99 and closed yesterday at $46.92, 25% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.9% while the 200-day MA has remained constant.

By Adrienne Chilton
achilton@fnno.com