Why Did Humanigen's Stock Dump Today And What's Next?

Humanigen Inc. HGEN shares are trading sharply lower Thursday after the company announced the FDA declined its EUA request for lenzilumab in hospitalized COVID-19 patients.

Humanigen was down 51% to $7.43 at time of publication.

The Daily Biotech Pulse: ProQR-Lilly R&D Partnership, Humanigen's COVID-19 Drug Denied Emergency Use Authorization

Humanigen Daily Chart Analysis

• After the FDA declined the company's drug the stock saw a large dip below a previous channel it held as support and resistance.
• The $15 level was once an area of resistance before it broke above the level, then it held as support for a time. The $8 was previously an area of support, but after the large gap down, the area may hold as resistance.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock is bearish.
• Each of these moving averages may act as a place of resistance in the future
• The Relative Strength Index (RSI) dropped way lower and now sits at 15. This is well into the oversold range and the stock is seeing way more sellers than buyers.

What’s Next For Humanigen?

Bullish traders would like to see the stock start to rebound and form higher lows. Bulls would then like to see the stock start a higher low trendline and work its way back up to where it came from.

Bears got what they wanted, bears saw a 50% drop Thursday. Bears next would like to see the stock continue to fall lower and be unable to find support somewhere.