Agios Pharmaceuticals' Stock Is Headed Much Lower

Although the overall stock market has been pulling back over the last 3 days, the biotech space has been being taken out to the woodshed.

Considering that biotech stocks had been among the hottest in the entire market, it’s not too surprising that once the levy broke, investors started running for the exits.

As a gauge, the iShares Biotechnology ETF (NASDAQ: IBB) is down almost 8 percent from its peak of $375 in just 4 trading days.

Because of this, there are many biotech stocks that are breaking down through key supports. One in particular that seems to be breaking down today is Agios Pharmaceuticals.

Agios Pharmaceuticals focuses on the development and commercialization of therapeutics in the field of cancer metabolism and rare genetic disorders of metabolism in the United States.

The company has a collaboration and license agreement with Celgene Corporation to discover, develop, and commercialize disease-altering therapies in oncology.

Review the 1-year chart of Agios with the added notations:

After breaking through its $50 resistance back in September, Agios almost tripled in value.

The stock peaked in January and has been on a steady decline since.

Starting in December, Agios had tested $101 on 4 separate occasions. So, $101 became a key level of support for the stock.

Today the stock finally broke that support level and should be moving much lower, overall, from here.

The stock closed yesterday at $101.48/share.

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.

Posted to The Biotech Trader on Mar 25, 2015 — 2:03 PM
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