Is Tonix Pharmaceuticals About To Breakdown?

There is a good chance Tonix Pharmaceuticals TNXP breaks the support at $1 and moves lower.

There's support at this level because it's important psychologically. Many investors like to place their orders at nice round levels and that’s the case here.

When TNXP fell to $1 in early March, a rally followed. But that may not happen again because the lower high that the stock formed is bearish.

In February, buyers were willing to pay as high as $2 for the stock. This is High #1 on the chart, which was Feb. 11.

The next month, shares peaked at around $1.50. This was the most anyone was willing to pay at that time. This is High #2 on the chart, which was March 17. It was a lower high.

This dynamic of buyers not willing to pay higher prices as time passes is bearish, which is what causes markets to trend lower.

There’s a good chance Tonix breaks the support at $1 and makes a significant move lower.