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Possible Bearish Inside Day Candle Pattern Detected for Spectrum Pharmaceuticals (NASDAQ:SPPI)

Published on Mon, 04/15/2013 - 07:29
By Peter Chu

Analysts have spotted a possible bearish inside day candle pattern in Spectrum Pharmaceuticals (NASDAQ:SPPI) based on the price action in the company's shares. Yesterday's price range of $7.17 and $7.29 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 Spectrum Pharmaceuticals may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Over the past year, Spectrum Pharmaceuticals has traded in a range of $6.92 to $17.48 and closed yesterday at $7.26, 5% above that low. The 200-day and 50-day moving averages have moved 1.33% lower and 4.49% lower over the past week, respectively.

Spectrum Pharmaceuticals Inc. develops in-licensed drugs for the treatment and supportive care of cancer patients. The Company's satraplatin is an oral, anti-cancer drug. Spectrum's Elsamitrucin targets non-Hodgkin's lymphoma, and Neoquin is being studied in the treatment of superficial bladder cancer. Spectrum also has a pipeline of pre-clinical neurological drug candidates.

Spectrum Pharmaceuticals (NASDAQ:SPPI) has potential upside of 179.9% based on a current price of $7.26 and analysts' consensus price target of $20.33. The stock should find initial resistance at its 50-day moving average (MA) of $9.86 and further resistance at its 200-day MA of $11.85.

By Peter Chu