Laura McCandless
1 min read
Biotech stock Crispr Therapeutics Inc's (NASDAQ:CRSP) June rally appears to be coming to an end. The shares are looking to snap a seven-day win streak, down 0.6% at $42.69 at last glance. Plus, after hitting its highest level since March, the stock is now flashing a historically bearish signal on the charts.
Per Schaeffer's Senior Quantitative Analyst Rocky White, CRSP has moved up toward its 260-day moving average. More specifically, the security is within 0.75 of the trendline's 20-day average true range (ATR) after spending at least 80% of the last 10 days and 80% of the last two months below it.
Within these parameters, five other signals occurred in the past three years. CRSP was lower one month later 80% of the time after these events, averaging an 8% loss. From their current perch, a similar move would put the shares back below the $40 level, which acted as resistance from mid-April to late last week.
Options bulls have been blasting Crispr Therapeutics stock over the last two weeks, and an unwinding of this optimism could provide further headwinds. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 14.50 calls have been bought for every put in the last two weeks, which is a higher ratio than 99% of readings from the past year.
