Sorrento Therapeutics Stock Looks To Form Bullish Falling Wedge

Sorrento Therapeutics Inc. SRNE shares lost ground Monday with no evident explanation. The stock was trending on StockTwits. 

Sorrento Therapeutics was down 7.59% at $6.94 at the close. 

Sorrento Daily Chart Analysis: The daily chart shows the stock is trading in a channel and looks to be forming a falling wedge pattern. 

The stock is trading in a channel with support near the $6 level. The channel is showing potential resistance near the $12 level. These areas are places on the chart where the price has previously struggled to cross.

More recently, the chart looks to be forming what technical traders could call a falling wedge pattern. This bullish reversal pattern forms when connecting highs on the chart forms a steeper line than the one that connects the lows.

The stock is trading below the 200-day moving average (blue), indicating the stock has been trading with bearish sentiment. This indicator may hold as another potential area of resistance in the future.

What’s Next For Sorrento Therapeutics? Bullish technical traders would like to see the stock break out of the falling wedge pattern and start to form higher lows.

Seeing the stock form higher lows up to the resistance line before breaking out and consolidating is ideal for bulls. A cross above the $12 resistance line with some consolidation may bring a chance for a further upward move.

Bearish traders would like to see the stock fail to hold the $6 level as support. A cross below this level with some consolidation might bring a further move downward.