Wednesday, June 1, 2016

Retrophin Inc (NASDAQ: RTRX)

Retrophin, Inc., a biopharmaceutical company, focuses on the development, acquisition, and commercialization of therapies for the treatment of serious, catastrophic, or rare diseases. Its product line includes Cholbam, a cholic acid for the treatment of bile acid synthesis disorders due to single enzyme defects, and for adjunctive treatment of peroxisomal disorders, such as Zellweger spectrum disorders in patients who exhibit manifestations of liver disease, steatorrhea, or complications from decreased fat soluble vitamin absorption; Thiola, which is indicated for the prevention of cystine stone formation in patients with severe homozygous cystinuria; and Chenodal, a synthetic oral form of chenodeoxycholic acid for radiolucent stones in well-opacifying gallbladders.
Take a look at the 1-year chart of Retrophin (NASDAQ: RTRX) below with my added notations:
RTRX breaks resistance
RTRX had been in a solid downtrend going into February. However, over the past several months the stock had also created a key level of resistance at $16 (red). A break above that $16 level should mean higher prices for the stock, and last week RTRX finally broke that resistance.

The Tale of the Tape: RTRX broke through its key level of resistance at $16. A long trade could be entered on a pull back down to that level. However, a break back below $16 could negate the forecast for a higher move and would be an opportunity to get short the stock.

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