Last week, the five biggest stock market losers declined between about 75% and 37%. Below is a look at each stock and what they may have in the cards going forward.
Galera Therapeutics, Inc GRTX gapped down about 70% lower on Tuesday of last week, making it the biggest loser in the stock market. Although big bullish volume came in immediately following the drop, the stock was unable to erase much of its losses and closed the trading day up just 8% higher.
Galera is now trading in a confirmed downtrend, which began on Oct. 12 when the stock completed a bearish triple top pattern at the $8.49 mark. The most recent lower low falls at the $1.79 level and bulls will want the stock to hold above the level in hopes Galera will create a bullish double bottom pattern and reverse course.
Last week’s drop lowered Galera’s relative strength index (RSI) to about 14%. When a stock’s RSI reaches or exceeds the 30% level it becomes oversold, which can be a buy signal for technical traders. Galera’s RSI has never registered this low previously, but when the RSI fell to about 23% through the month of April the stock increased 72% over the 11 weeks that followed.
Galera has never traded in the current range before so there are not any solid support and resistance levels outside of Tuesday’s high of $2.54 and Friday’s low of $1.79.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
Atea Pharmaceuticals, Inc AVIR was the second biggest loser of the week after falling 68% on Tuesday. Like Galera, big bullish volume came in on the dip and propped the stock up 55% over the course of the day but on Wednesday, the volume dropped off and Atea has spent the subsequent trading days consolidating sideways.
On Monday, Atea was working on printing a bearish shooting star candlestick, which indicates lower prices may come on Tuesday. If Atea drops below the Oct. 19 all-time low of $10.76 the downtrend will be further confirmed.
Atea’s relative strength index is registering in at about 25%, which indicates the stock is oversold. When Atea’s RSI dropped below 30% for much of April and June the stock rebounded 140% over the three months that followed.
Atea has support below at $10.76 and has resistance above at $16.63 and $18.80.
Metacrine, Inc MTCR lost 53% of its value on Friday, which made the stock the third biggest loser of last week. The stock is currently trading down over 90% from its all-time high of $16.21 printed on Sept. 16, 2020.
On Monday, Metacrine was attempting to print a bullish hammer candlestick on the daily chart, which indicates a rebound or bounce may be in the cards. A move higher would make sense for technical traders because similarly to Galera and Atea, Metacrine’s RSI is in oversold territory.
Metacrine has support below at Monday’s $1.43 low-of-day and resistance above at $1.84 and $2.61.
Ocular Therapeutix, Inc OCUL fell 40% on Friday and on Monday was consolidating the drop with an inside bar. Both Friday and Monday’s candles have a lower wick, which indicates there are buyers near the $6.70 area.
Monday’s price action was causing Ocular to print a bullish hammer candlestick on the daily chart, which may indicate higher prices are in the cards for Tuesday. Like Metacrine, higher prices are also likely because Ocular’s RSI is in overbought territory.
Ocular has support below at $6.14 and $5.13 and resistance above at $7.14 and $8.18.
Vinco Ventures, Inc BBIG closed last week down 37% following four straight days of selling pressure that began during Tuesday’s session. On Monday Vinco was working to print an inside bar on the daily chart.
Normally an inside bar pattern in a downtrend would be considered bearish but the stock has created a bullish triple bottom pattern by bouncing off $4.98 level on Oct. 8, Oct. 11 and Oct. 22. Bullish traders will want to see confirmation that the pattern was recognized over the coming days, in the form of higher prices.
Vinco has support below near the $5 level and at $4.86 and resistance above at $6.08 and $7.40.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
