Nektar Therapeutics Pullback May Be Short-Lived

NKTR is encountering a historically bullish trendline at the moment

Managing Editor
Jan 23, 2020 at 11:43 AM
facebook X logo linkedin

Biopharmaceutical stock Nektar Therapeutics (NASDAQ:NKTR) is down 0.5% this afternoon, last seen at $22.02. NKTR has recently struggled to gain momentum, but earlier this month touched its highest intraday mark since an early August post-earnings sell-off. Today's drop may be short-lived, however, as data from Schaeffer's Senior Quantitative Analyst Rocky White suggests NKTR may be flashing a buy signal as it nears a historically bullish trendline.

Specifically, Nektar Therapeutics stock has come within one standard deviation of its 40-day moving average, following an extended period above the trendline. The equity has seen five similar pullbacks within the past three years, which has resulted in an average 21-day gain of 31.2%, with 75% of the returns positive. Another move of this magnitude from the stock's current perch would catapult NKTR back near $30 for the first time since August.

Daily NKTR with 40MA

However, short sellers have been heading for the exits. Short interest dropped a notable 8.8% during the past two reporting periods, and now accounts for nearly 17% of NKTR's total available float.

At the security's average pace of daily trading, it would take shorts an extended six months to buy back their bearish bets. An extended round of short covering could create bigger tailwinds for NKTR stock.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI