Monday, September 11, 2017

(AIMT) - Is Aimmune overbought?

tl;dr: AIMT has a peanut allergy treatment pivotal trial expected to conclude this month; MACD divergence indicates continued rise; RSI & Stochastic climbing; thoughts?

I've been following Aimmune (AIMT) for a while as the endpoint readouts for their PALISADE trial are expected for 3Q17. The company has three conference meetings this month, where I'd expect we'll begin to get the full picture for AR101, the company's investigational peanut allergy desensitization therapy. The details of that are interesting, but the technicals have me worried.

Positive news bumps aside, there was a MACD technical cross in August followed by a 0 cross and some stable positive divergence. For context, the consensus price target on AIMT is $32 (current price $23.37) if they meet their primary endpoints. If not, it's a wash - their risk is concentrated in a few drug candidates and there's up to 70% downside. So those risks aside, the RSI has just crossed 70, which by itself doesn't concern me, but coupled with a Slow Stochastic at 94.3, I'm worried we may see a sell-off event before the topline readout.

Any thoughts? Am I reading into false signals? Link to stockcharts here.



Submitted September 11, 2017 at 10:15AM by itinerantzymurgist http://ift.tt/2fclOH1

No comments:

Post a Comment