Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) – Pharmacyclics, Inc.(NASDAQ:PCYC) on the daily charts has seen intensified selling since the time it broke the important support zone at $97.01. This intensified selling in the counter has been accompanied with high volume which is a very bearish signs for the stock and we believe that the stock might see lower levels in the coming few sessions. The stock currently trades below its 50 day moving average and the 200 day moving average showing us just how intense the selloff in the stock has been. The stock was in a very good uptrend the whole of last year but the waning interest in the sector over the last couple of months has led to the stock fall and break important support zones.
The momentum indicators for Pharmacyclics, Inc.(NASDAQ:PCYC) are in the oversold area but aren’t showing any signs of a pullback giving us signs that the downtrend momentum in the stock might continue and we might see lower levels. The relative strength index for the stock is exhibiting no strength at all at the current moment and cannot be used as an indicator to enter long into the stock.
The weekly charts for Pharmacyclics, Inc.(NASDAQ:PCYC)shows a breakdown of key support zones and makes us believe that the uptrend in the stock might have ended and it’s time for traders to book profits or go short as the stock can head lower in the coming weeks. The MACD and RSI for the stock on the weekly charts have both given sell signs and make us believe that the stock can head down to levels of $78.19. The stock currently trades below its 50 day moving average and if the support at $78.19 doesn’t hold we can see the stock head towards its 200 day moving average at $50.09
(Figure): Daily chart for Pharmacyclics, Inc.(NASDAQ:PCYC)
Pharmacyclics, Inc. (NASDAQ:PCYC) submitted filling for a cancer drug in front of the FDA which is positive news for the stock.