3 Stocks Sinking in Afternoon Trading

BlackBerry stock is extending its recent fall on the charts

Managing Editor
Jun 22, 2018 at 2:57 PM
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The Dow is soaring alongside oil in afternoon trading, as traders react to today's news about the Organization of the Petroleum Exporting Countries (OPEC) meeting. Three individual stocks also making noteworthy moves are electric car manufacturer Tesla Inc (NASDAQ:TSLA), drug stock Pain Therapeutics, Inc. (NASDAQ:PTIE), and tech concern BlackBerry Ltd (NYSE:BB). Below, we will take a closer look at how shares of TSLA, PTIE, and BB are trading on the charts.

TSLA Falls With Auto Stocks

Shares of Tesla stock are 3.4% lower at $335.76, as car stocks reel on President Donald Trump's latest tariff threat -- this time toward the European Union (EU) and auto imports. Today's drop is being contained near the $335 region, though, which is home to a 38.2% Fibonacci retracement of TSLA's May-to-June surge. Longer term, Tesla has shed 12% over the past 12 months. 

In the options pits, traders have been targeting long calls over puts at an unusual clip, with data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) showing the security with a 10-day call/put volume ratio of 1.56, in the 98th annual percentile. With 31% of the stock's float sold short, though, some of this could be a result of shorts hedging.

FDA Flag Levels Pain Therapeutics Stock

Pain Therapeutics stock is down 13.7% at $8.01 -- set for its worst day since May 2017 -- after the Food and Drug Administration (FDA) flagged an opioid-abuse risks in a review for the the company's pain drug, Remoxy. The stock had otherwise been on an uptrend since early February, and has still doubled year-to-date.

Part of the stock's longer-term gains came amid a steady stream of short covering, with these bearish bets down almost 42% since the start of the year. Nevertheless, short interest still accounts for nearly 13% of the stock's total available float, or 6.7 times the average pace of trading.

BlackBerry Stock Finds Familiar Support

BlackBerry stock is 8.3% lower at $10.73, after the company earlier forecast slowing software and services sales as it shifts to a subscription-based model -- which is offsetting first-quarter earnings and revenue beats. BB has been trending lower since its early June peak. But while the stock is pacing towards its fourth straight close below the 20-day moving average, it appears to have found a foothold atop its 320-day moving average -- which cushioned an April pullback, as well.

Against this backdrop, Canaccord Genuity cut its price target to $10.50 from $11.00. This just echoes a broader theme, considering all six analysts following the telecom stock maintain a "hold" or worse rating. What's more, BlackBerry stock's average 12-month price target of $11.73 currently stands at a slim 9% premium to current levels.

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