Technical Speculator.com Trade-of-the-Week: Aeri Pharmaceuticals Inc. (AERI)

By Tech_Spec
15-July-2018 7:47:34 AM
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This week’s Trade-of-the-Week comes from the biotech sector of NASDAQ.  In considering AERI, this stock is a technical trade only.  The fundamentals do not support the purchase.  Below are some of the key information.

Company Profile: Aerie Pharmaceuticals, Inc., an ophthalmic pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of glaucoma and other eye diseases. Its lead product is Rhopressa, a once-daily eye drop to reduce elevated intraocular pressure (IOP) in patients with glaucoma or ocular hypertension. The company’s advanced-stage product candidate is Roclatan, a once-daily eye drop to reduce IOP to treat patients with open-angle glaucoma and ocular hypertension.  Aerie Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Durham, North Carolina.

Fundamentals: 

Trailing P/E: N/A, Forward P/E: -59.92

EPS: -4.38, Beta: 1.01

Peg: N/A, P/S: N/A

ROA: -32.66%, ROE: -99.98%

Qrtly Earnings Growth: N/A, Current Ratio: 13.57

Additional Fundamental Data: https://finance.yahoo.com/quote/AERI/key-statistics?p=AERI

Technicals:

Recently broke out of an 8-month consolidation

New 52-week high, New all-time high, NASDAQ and biotech sector are also at all-time highs.

Buying momentum (RSI) is positive and almost overbought, Buying volume is neutral

1st support level is at $66.50

The safety stop is at $63.00

The target is $83.25

Suggested buying approach:  This is a technical trade only.  The fundamentals are not supportive. As AERI is almost overbought, buy a half position now. If the stock pulls back, as long as the price is above the safety stop level, wait for confirmation of support and then add to the position.  Always use a 3% trailing stop. 

More trading ideas and research are on www.technicalspeculator.com

 

 

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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