NEU chart, page-1832

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slick

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13/08/24

17:21

Post #: 75189409
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Originally posted by Esmer: ↑

Attempting to remove the psychology (and probably some so-called AI) that may have been involved in Friday's SP gyrations, and concentrating only on the fundamentals, IMO the SP now looks undervalued.

IMO, Friday's gyrations were partly caused by panic selling that resulted from holders watching how the Acadia guidance affected the pre-open match price, and then watching with horror the match price sink further during the pre-open after the Angelman results P2 were announced, particularly as the P2 results were actually positive. Possibly some did not have enough time to properly digest the P2 results, however what they could see was that the SP was taking a big hit, so took fright due to fear that something had gone horribly wrong. It might not have just been retail investors, but some instos might have also got caught up in the stampede possibly having misinterpreted the situation and possibly thinking that there was a good trading opportunity to sell and buy lower later. AI may have been to blame.

The SP turned upwards and then moved upwards very fast, soon after trading began. Only the very nimble would have grabbed the biggest bargains which were not available for very long. Although selling pressure remained throughout the day, the overall trend for the day after the initial selloff was upwards.

A similar scale of SP gyrations in other stocks usually results in a much higher volume of shares changing hands than happened for NEU on Friday, which IMO technically means that for NEU there isn't really as much selling pressure as the SP fall would indicate.So, unless some big holders now get the jitters and decide to dump, IMO on my technical chart the SP is likely to now move upwards to possible resistance at $18.50.

This is all just my humble opinion based on a mixture of technicals and fundamentals. Pharma stocks can be very volatile.

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RSI at 25 backs you're theory up.

NEU Price at posting: $15.94 Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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