Retracement Watch: Array Biopharma Inc, Alexion Pharmaceuticals, Inc., and Horizon Pharma PLC

Drug stocks ARRY, ALXN, and HZNP are in focus as they approach key Fibonacci retracement levels

by Alex Eppstein |

Published on Jan 11, 2017 at 11:15 AM

Drug stocks made some big moves yesterday. As a result, a number of biotechs find themselves approaching key retracement and Fibonacci levels, which could determine where they go next. Three names we'll zero in on today are Array Biopharma Inc (NASDAQ:ARRY), Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), and Horizon Pharma PLC (NASDAQ:HZNP).

ARRY rallied yesterday on buyout buzz, following this sector peer's $5.2 billion sale. While fundamental developments could factor into where the stock moves in the future, it's worth noting that the shares hit a nine-year high of $9.96 earlier today, and were last seen at $9.75 -- above the 61.8% Fibonacci retracement of their 2007 top and 2012 bottom. If ARRY can maintain a foothold here, it could bode very well for the drug stock in its journey to get back to previous highs.

arry monthly jan 11

ALXN is off 2.6% at $139.98 -- its second straight session of heavy losses, after the drugmaker's interim CEO said Tuesday the company is not up for sale. As a result, the stock has slipped south of the 38.2% Fibonacci retracement of its 2016 high and low -- a level that's served as both support and resistance over the past 12 months.

alxn weekly jan 11

HZNP rallied yesterday after the drugmaker gave a financial update, estimating fiscal 2016 net sales from its primary care medicines at about $600 million. However, the stock still has to clear a major hurdle in the form of a 50% retracement of its 2016 low and high. The shares approached this level earlier -- running as high as $18.19 -- but were rejected, last seen down 0.8% at $17.94.

hznp weekly jan 11

Let us help you profit from market volatility. Target big gains in short order with a 30-day trial of Schaeffer's Weekly Volatility Trader!

JOIN FREE

Get Schaeffer's Opening View every morning before the bell rings.


MORE | MARKETstories


Dow Falls With Apple; Healthcare Rebound Helps S&P Higher
Senator John McCain said he couldn't support the latest Republican healthcare bill
The Car Stock Stalling on a New 'Sell' Rating; Plus, HPE's Job Cuts
Hewlett Packard Enterprise reportedly plans to let 10% of its staff go
Tesla Stock's Rough Week Sparks Heavy Options Trading
Tesla stock is on pace for its worst weekly loss since early July

Partnercenter


TRADING SERVICES | FEATUREDproducts


By MG 2016
In March of 2016, I was introduced to Expiration Week Countdown.  The results are better than words!
Options trading made simple.
Schaeffer's Investment Research, Inc. is dedicated to providing subscribers advantages in options trading and investing.  Our independent market research services create profitable opportunities for investors at every level.