Two week downward channel with an aberration candle to the upside on the data news representing some covering with the downward trend resuming immediately on the news. What looked like a potential flag formation with a potential break above $6.87 area representing a potential reversal/breakout just broke down.
Reached the $6.20 level we discussed last night. Has already broken through 50 day - Looking at a 3 month daily candle chart, if it cuts down into the gap up candle from $5.50, then it will likely retrace to that level - $5.50 . So far, it looks like the shorts are playing this as a short for the next 8 months without partner news. They'll pressure it as much as they can and the stop losses being taken out on the downtrend are helping and retail capitulation is helping. They likely shorted more on the data day, so short interest will likely climb. The Deerfield payment is positive, but the war will be based on the immediate leverage on all fronts a partnership will bring, and it looks like the shorts are playing post-FDA approval partnership news. The lower volume window here in August post the news, with the markets retracing temporarily or flat, even with macro risk off with the Egypt climbing volatility affecting all risk considerations, WITH THIS DOWNTREND, leaves the pps temporarily vulnerable. The 50 broke. I don't believe MNKD gets to its 200. It could certainly reach $5.50 considering the movement the last two weeks. The high share count in a low volume window, again, leaves it vulnerable to naked shorting in order to ultimately accumulate long and cover from the lowest range possible. The long play becomes extraordinarily attractive anywhere below $5.50 in my view, but the shorting is fueling selling and the selling is giving the short pressure more leverage here. Don't time a reversal at this point. Let it turn.
Your posts are well thought out with regards to both technicals and market sentiment. It is a pleasure reading your views as they are very calculated, logical, and devoid of the normal BS that most posters spew on these message boards. Thanks for sharing!!