Sesen Bio Inc. (NASDAQ: SESN) shares traded higher Friday on anticipation of the announcement of the company’s expected FDA decision.
The decision was made that the company’s Biologics License Application for Vicineum could not be approved by the FDA in its present form. Shares were halted in anticipation of the announcement.
Sesen Bio was up 20.77% at $5.93 before the stock halt. After the stock reopened, shares fell more than 80% to under $1.
Sesen Bio Daily Chart Analysis
- The stock looked to have broken out of what technical traders call an ascending triangle pattern. The pattern broke out, then retested resistance as support, and has been pushing higher since.
- The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely facing a period of bullish sentiment..
- Each of these moving averages may hold as a potential area of support in the future.
- The $3.50 price level was holding as resistance for a time before the stock broke out. This level went on to hold as support and may again in the future.
- The Relative Strength Index (RSI) has been pushing higher the past couple of weeks and now sits at 78. This shows there has been a lot of buying pressure moved into the stock.
What’s Next For Sesen Bio?
Bullish traders are looking to see the stock continue to breakout and then see a period of consolidation. Following consolidation, the stock could see another leg up.
Bearish traders would like to see the stock fall back below the $3.50 level before breaking below it. Bears would then like to see the stock fall further and crack below the higher low trendline for a possible change of trend.
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