Where Might Entera Bio Stock End Up After Rallying Wednesday

Entera Bio Ltd ENTX shares rallied higher Wednesday after the company announced it saw positive results from its final six-month bone mineral density results from the completed Phase 2 clinical trial of EB613 for osteoporosis.

The company states that its EB613 is positioned to be the first oral bone-building product to treat osteoporosis patients.

Entera Bio was up 41.20% at $6.34 at last check Wednesday.

Entera Bio Daily Chart Analysis

• Shares may be forming into what technical traders would call a cup and handle pattern — the stock has formed the cup of the pattern but not the handle.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock is bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Entera Bio Levels To Watch

• The stock has formed into a cup pattern over the past few months, with this pattern considered a bullish continuation pattern and may form a handle before the pattern is over.
• The cup and handle forms after the stock makes a high and falls for a while, but eventually picks up steam again and reaches the same high forming a cup on the chart. After a pullback may happen and the stock can make a handle. If the stock can get back above the highs after forming a handle it could see a breakout.
• The Relative Strength Index (RSI) shows that the stock has entered into the overbought area. The RSI is sitting at 76, which is in the overbought range that starts at 70 and goes up to 100. The stock being overbought means there are many more buyers than sellers in the stock.

What’s Next For Entera Bio?

Bullish technical traders would like to see the stock take a slight pullback and form the handle on the chart. Bulls would then like to see the stock start moving up again and watch the price break above the previous highs.

Bearish technical traders would like to see the stock fall and be unable to break above the previous highs. This may mean the stock does not have enough buyers to push it to new highs. Bears would like to see the RSI fall back out of the overbought range.