Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Open Orphan PLC (LON: ORPH) have been stuck in a sideways trading pattern for the past three months despite announcing several positive developments, and the shares are yet to break out of this range.
The niche CRO pharmaceuticals company recently announced that the first volunteer had been dosed with Codagenix’s intranasal COVID-19 vaccine marking the start of phase I clinical trial of the US biotech company’s vaccine, yet its shares kept falling.
Open Orphan also announced several major contract renewals in December and early January. Yet, the news did not trigger a significant rally in the specialist CRO company’s stock price, which kept trading within the 3-month range.
Turning to the company’s price chart, we can see that its shares hit the top end of the range last week and have been falling since then, but are still within the upper half of the trading range.
It is hard to make a bullish case for the company given that the past six days have resulted in bearish candles as the price pulled back indicating that the price could keep falling to the bottom of the range.
Regardless, open Orphan has a lot going for it. I would not be surprised if the company’s stock rallied higher and broke out of the current trading ranging, especially if a major positive announcement fuels the move.
In the meantime, I will keep a close eye on the stock to see where the price heads over the coming days. I would not open any new positions now given that the stock is in the middle of the range.
The best way to profit from a range is to buy at the bottom and sell at the top. It is never a good idea to open new positions in the middle of a range.
Open Orphan share price
Open Oprhna shares are trading in the upper end of a 3-month sideways trading range, could they be setting up for a breakout?
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