I have been on this board over three years. Today's action is all to familiar, drive out the scared money for another short term gain. Next week we will be back to 4.55 and everyone will wonder what happen. Question, anyone have an answer for this drop? I can find no explanation.
I don't post on this board that often but I would like to offer what I've been observing from a technical standpoint. As I said in a previous post, ATRS price action does not mean anything in the absence of news. Ever since the highs of July 2012. Volume has continued to deteriorate regardless of which direction the price has been moving. This tells me that most of the smart money already placed their bets long ago or are waiting on the sidelines.
My guess for the following weeks is that we fall slightly more and stabilize in the low 4s. Volume will continue to deteriorate and price action will become less and less volatile and capped in the mid 4s as we approach the FDA decision date. I think the FDA decision/approval date is when ATRS will finally rocket past the 5 dollar mark and actually hold its gains due to increased future revenue potential. 5 dollars is really significant. It has been an obvious resistance level for over a decade.
Bottom line: If you are a long term investor and are confident in Otrexup approval, these prices are a steal. If you are a trader, ATRS will probably be dead money as the consolidation continues and you probably won't make much on either side of the trade until October.
Technically this was overdue and needed to happen, buying was exhausted, shares had hit the ceiling, and it had no place to go except down. This is healthy for the rise to have this happen, otherwise it's an unstable tower. I think the rising channel support is somewhere in the mid 4.20's. Didn't add shares today, there may be a day or two early next week when it drops further before stabilizing and then working its way back up. I hope there's no secondary announced, didn't think of that until I saw that mentioned on this board.
$4.25 or so is the original breakout level from a multi-month consolidation. This is the level to watch from a technical standpont. A weekly close below $4.20 would be concerning. However, stocks often pull back to the original breakout level before moving to new highs. As far as a secondary offering, they aren't going to do another one. That's what October was for.