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