Shares of Casava (SAVA) traded more than 25% lower on Wednesday after the pharmaceutical company’s founder and current President/CEO announced their resignation. Remi Barbier founded the company in 1998.
Casava stock has lost almost 50% in the last two week after the company revealed that an advisor to the company had been charged with defrauding the U.S. National Institutes of Health (NIH) of approximately $16 million in federal grant funds.
The company also announced today that it would be reviewing its disclosure practices to ensure it is providing stakeholders with clear and comprehensive information.
Analysts have been downgrading the stock given the recent headlines and disclosures, pushing prices through a critical psychological price level.
Shares broke through the $10 price today. This price has acted as relatively strong support over the last two weeks, but today’s heavy volume trading will serve to strike the stock on a course to $8.
Expect that the next few weeks will see additional selling from large shareholders and institutions, which hold more than 35% of the outstanding shares.
Short- and long-term investors should not expect to see the stock regain its strength with $5 as an intermediate-term target over the next 4-6 weeks.
United Airlines (UAL) shares are trading lower by 5% after hours on Wednesday after the company released its quarterly earnings results.
The company beat analyst’s expectations for earnings per share of $3.93 by $0.21, but missed on The Street’s revenue target.
The company issued fiscal year guidance that is still inline with expectations though expressing that the next quarter may be more challenging as travelers are lightening-up on bookings.
United plans to lower inventory over the next quarter to meet oversupply in their market. The company’s report follows Spirit Airlines (SAVE) lowered guidance after the close on Tuesday. Spirit also guided lower to address changes in airline bookings.
United Airlines shares just found support from their 200-day moving average yesterday as the stock traded just below $45 to today’s highs of $47.50.
As if putting on a show of how technical analysis works, today’s rally in United Airlines was reversed by the stock’s 20-day moving average (chart below).
The stock’s 50-day moving average turned bearish on July 2 just ahead of a 9% decline in share price over one week’s time.
Watch for a break below that same 200-day that provided support two days ago to signal that selling pressure is on the rise.
A move below that level will also put the stock under its 20-month moving average, thus in a long-term bear market trend.
Target a move to $40 for UAL stock.
Advanced Micro Devices (AMD) saw extreme selling pressure today as the stock posted its worst close since October 10, 2022.
Shares dropped 10.2% to close the day below $160 after a price that AMD shares last traded at just two weeks ago.
This week’s quick reversal erased a six-day, 17% rally that started on July 2 as investors rushed into the entire semiconductor sector with increased volume.
The shock of buying interest in this and other AI-related stocks may have served as a short-term top as investor’s expectations have become too optimistic and bubbly ahead of the technology earnings season set to kick off in just one week.
Adding to the selling pressure is a huge rebalance of investments that appears to be happening from large cap tech into other, more value based, areas of the market. Those sectors include banks, real estate and industrial stocks.
Advanced Micro Devices closed the day by breaking below its 20- and 50-day moving averages. A stock is often sent into an additional round of selling pressure after breaking both trendlines, just as AMD shares did today.
From a long-term perspective, Advanced Micro Devices shares are trading more than 25% from their highs posted in March.
The stock is trading above its long-term 20-month moving average, putting it in a long-term bull market.
Investors looking for technical support in Advanced Micro Devices shares should eye the $150 price.
This price is near the stock’s 200-day moving average, currently in a bullish trend. In addition, $150 serves as a psychological round-numbered support price. The stock found support at the same price as shares built a technical bottom in May.
