Markets

Here is why Technicals Are a BEAR on Synergy Pharmaceuticals Inc. (SGYP)

Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) in yesterday’s session. The stock price went upward in 5 of the last 10 days and has generated 30.3% during the last two weeks.

Inside SGYP’s Recent Trend

Synergy Pharmaceuticals Inc. (SGYP) has broken the very wide and falling short-term trend up. Initially a lower tendency for declines in the price is indicated and this might very well be an early sign that a trend shift is more likely to happen in the next couple of days. In case of reaction, the stock will see strong support at $3.41, a point that may provide a 2nd chance needed to hit a runner. The next trend top is most likely to be exhibited at $5.00 will be the next possible trendtop level and thereby pose a resistance level which may not be broken on the first attempt.

Synergy Pharmaceuticals Inc. Technical Signals



SGYP has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend. Upon corrections, the price will meet support from the averages between $3.06 and $2.89. A break down through these support points will trigger sell signals. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. Its pivot point high generated sell signal on Wednesday October 04, 2017, which calls for additional declines until the stock forms a new pivot point low, as this could be a buying opportunity. Volume dropped in the recent session while price showed zero percent change. This may or may not be an early warning signal. It is still a good idea for investors to wait for the next couple of days before taking any step.

Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) Support And Resistance Levels

In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $3.07 and $2.98. In case of gains, the next resistance from accumulated volume will be at $3.88, $4.05 and $4.19.




It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Synergy Pharmaceuticals approaches the first support point just current price at $3.07. In case of a break, the next support we will see from accumulated volume is going to be at $2.98 and $2.90.

Synergy Pharmaceuticals Inc. (SGYP) Risk Assessment

A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.16 between high and low, or 4.69%. The average volatility for the past week stood at 9.81%.

The stock is extremely overbought on RSI14 (84). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

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