Sage Therapeutics, Inc. (NASDAQ:SAGE) fell by -8.02% in Thursday’s trading session from $70.46 to $64.81 and has now fallen 4 consecutive sessions. The stock price went upward in 6 of the last 10 days, but has retreated -19.36% over the same course of time. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -1.17 million shares and in total 1.78 M shares exchanged hands for about $115.61 million.
Inside SAGE’s Recent Trend
Sage Therapeutics, Inc. (SAGE) has broken the wide and horizontal trend down. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately $76.20 is considered to be a second chance to get out before further fall. It is, however, important to note that false breaks may appear and that the price may move back into the horizontal trend. A break on increasing volume is considered to be more significant and reliable than breaks on low volume.
Sage Therapeutics, Inc. Technical Signals
SAGE has witnessed its long term and short term MA triggering a sell signal. Many traders watch for long-term averages to cross above short-term averages to signal the beginning of a downtrend. Upon corrections, the price will meet resistance from the averages between $79.97 and $81.86. A buy signal will be generated if it crosses above any of these levels. Its pivot point high generated sell signal on Monday September 11, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.
Sage Therapeutics, Inc. (NASDAQ:SAGE) Support And Resistance Levels
There is no support from accumulated volume below today’s level and given the right condition the stock may perform very badly in the next couple of days. In case of gains, the next resistance from accumulated volume will be at $70.46, $76.40 and $81.00.
Sage Therapeutics, Inc. (SAGE) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $6.70 between high and low, or 10.59%. The average volatility for the past week stood at 9.26%.