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

Jan 11, 2017 at 11:15 AM
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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

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