ChemoCentryx Stock Needs To Hold At Support Or It May Slide Lower

ChemoCentryx Inc CCXI shares are trading lower Thursday, although there looks to be no company-evident news to explain the jump in share price. The stock was trending throughout the day on social media sites such as StockTwits.

ChemoCentryx was down 12.41% at $17.13 at last check Thursday at publication.

ChemoCentryx Daily Chart Analysis

• The stock broke out of the ascending triangle pattern and is now dipping back to a possible support level. This potential support is a place on the chart the stock once held as resistance.
• The $17 level is an area where the stock previously had struggled to cross above. After the stock broke above resistance, this area may hold as a possible area of support. If unable to hold, the stock may fall back toward the higher low trendline where it could find support.
• The stock trades above the 50-day moving average (green), indicating the stock has likely been facing a period of bullish sentiment.
• The 50-day moving average may hold as a place of support in the future.
• The Relative Strength Index (RSI) has been climbing higher the past month or so, but has seen a slight dip down in the past couple of days sitting at 55. This shows there is still more buying pressure in the stock than there is selling pressure.

What’s Next For ChemoCentryx?

Bullish traders are hoping to see the stock bounce off the $17 level. If the stock can hold this level as an area of support, it could signal that the stock is ready to see a further bullish push in the future.

Bearish traders are looking to see the stock be unable to hold the $17 level as support. Bears then want to see the stock break down below the $17 level and then the higher low trendline. This could indicate that the trend is changing and the stock could see further bearish moves in the future.

Photo by Julia Koblitz on Unsplash