Humanigen Rallies 54%: A Technical Analysis

Humanigen Inc. HGEN share rallied Monday amid positive Phase 3 data demonstrating Lenzilumab TM achieved its primary endpoint. The drug improves survival without the need for mechanical ventilation in hospitalized COVID-19 patients.

The stock closed up 54.47% at $21.61

Humanigen Short Term Chart Analysis: The 5-minute chart above shows the stock is potentially forming a “head and shoulders” pattern and is nearing support.

Bullish traders see the lows and would like the stock to be able to hold. The line shown connects the lows of the charts and may hold as short-term support.

Bearish traders see the stock may be forming a head and shoulders pattern and are looking to see the stock break below the lows for a further downward move.

Humanigen Daily Chart Analysis: The daily chart above shows the stock gapped up into Monday. The chart looks to be forming a large pennant chart.

Connecting the lows together and the highs together shows that the price action of the stock has been condensing tighter and tighter. Technical traders may call this a pennant. The chart will be condensed until there is most likely a strong push in either direction.

What's Next: Bullish traders would like to see the stock cross above the line connecting the highs with consolidation before the price may move further.

Bearish traders would like to see the stock fall below the lines connected by the lows for a stronger push downwards. Bears would like consolidation before a further downward move.

The stock is trading above the 200-day moving average (blue) on the daily chart,  meaning this indicator this area may hold as support.