Sellas Life Sciences Breaks Out Of Pennant Pattern: Technical Levels To Watch

SELLAS Life Sciences Group Inc. SLS shares were trading lower Wednesday after the company released updated clinical and initial immunobiological data from a Phase 1/2 clinical trial ofits lead asset, galinpepimut-S, the company’s Wilms Tumor-1-targeting peptide immunotherapeutic, in combination with the checkpoint inhibitor Keytruda.

Sellas Life Sciences was down 15.76% at $11.01 at last check Wednesday. 

Sellas Life Sciences Daily Chart Analysis

• Shares look to have formed a pennant pattern and have possibly broken out.
• 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 likely bullish.
• Each of these moving averages may hold as a potential area of support in the future.

Key Sellas Life Sciences Levels To Watch

• The pennant pattern formed and looks to have possibly broken out, even though the stock is falling Wednesday.
• After breaking out of the pennant pattern, the stock is looking to hold the gains from the bullish push that occurred during the breakout.
• The Relative Strength Index (RSI) has been falling throughout the past few days, last week the RSI was sitting near the overbought level of 70. The RSI has fallen some and now sits at 47.

What’s Next For Sellas Life Sciences?

Bulls would like to see the stock hold some gains from when the stock broke out of the pennant pattern. Bulls would also like to see the stock begin to form higher lows and continue to trade above the moving averages.

Bears would like to see the stock fall below where it was trading in the pennan pattern. If the stock can fall below where the pattern was, and fall below the moving averages then the trend may change.