Sarepta Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery and development of RNA-based therapeutics for the treatment of rare and infectious diseases. Its lead product candidate is Eteplirsen, an antisense PMO-based therapeutic in clinical development for the treatment of individuals with Duchenne muscular dystrophy. The company is also involved in developing treatments that are in clinical development include AVI-7288 for the treatment of Marburg virus and AVI-7100 for the treatment of influenza. In addition, it focuses on developing preclinical research product candidates for the treatment of other neuromuscular, infectious, and rare diseases.
To analyze Sarepta’s stock for potential trading opportunities, please take a look at the 1-year chart of SRPT (Sarepta Therapeutics, Inc.) below with my added notations:
SRPT has been trading between $30 and $35 for almost two months. Those two price levels are not new to the stock. Both $30 and $35 have been prior supports and resistances throughout the last year. SRPT’s next bigger move should be dictated based on which of those two levels break first.
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The Tale of the Tape: SRPT is trading between $30 and $35. A long trade could be made on a pullback down to $30 or on a break through $35. Short trades could be made if the stock breaks below $30 or approaches $35 again.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach