What's Going On With Clovis Oncology Stock?

Clovis Oncology Inc. CLVS shares gapped up Monday morning but have since fallen back to trading down on the day. There looks to be no company news acting as a catalyst that moved the share price, but likely the stock moved as retail traders pushed it. The stock was trending on social media sites such as StockTwits.

Clovis Oncology was down 1.01% at $5.36 at last check Monday. 

Clovis Oncology Daily Chart Analysis

• Shares look to be forming into what technical traders call a descending triangle pattern.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.

Key Clovis Oncology Levels To Watch

• Clovis Oncology has been in a downtrend throughout the last few months and now is nearing the end of the descending triangle pattern.
• The support line in the pattern sits near the $5 level, as the stock has been able to find support near this level multiple times in the past.
• The pattern resistance may continue to hold as resistance until the price is able to break above it and hold above the line. A break above may indicate the trend is changing.

What’s Next For Clovis Oncology?

Bullish traders would like to see the stock bounce off of support and start moving back higher. Bulls would then like to see the stock break above resistance for a potential trend change. Bulls would also like to see the stock break above the moving averages for a change in sentiment.

Bearish traders would like to see the stock continue to hold below the pattern resistance. If the stock can stay below pattern resistance for the entirety of the pattern, then the pattern may confirm and the stock may see a large bearish drop in time.