Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Calithera Biosciences Inc: A Big Bounce Could Be Brewing

ByAntónio Costa
Published 07/18/2016, 01:42 AM
Updated 07/09/2023, 06:32 AM

Calithera Biosciences Inc (NASDAQ:CALA) is one for the bottom pickers. The stock has had a rough time over the past weeks but the selling pressure seems to have dried up. The selling that brought the stock to $3.24 has slowed, and since last week the accumulation has been building. Strong volumes and sharp volatility indicate investor uncertainty which often precedes a trend change. In my view, the stock has formed a bottom and I expect a move past 3.66 to take the stock towards the target of 4.20 with stop-loss at 3.20. From a technical standpoint, there are some signs of an imminent bounce due to the positive divergences (MACD Hist, RSI & CMF), which often leads to short covering. Plus, the Parabolic SAR triggered a Buy signal for the first time since May. Fundamentally, the stock seems to be undervalued at current levels with a good balance sheet and zero debt. The percentage of shares held by institutional and mutual fund owners is 75%. A big bounce could be brewing.


CALA Daily Technical Chart

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.