Reversal for Celsion Corp. (NASDAQ:CLSN)?


Shares of Celsion Corporation (NASDAQ:CLSN) last traded at $2.69. (NASDAQ:CLSN) performance year to date is -36.73%. The 200 day simple moving average is -69.67%. The 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend. The price level in a market that coincides with the 200 SMA is recognized as a major support when price is above the 200 SMA or resistance when price is below the 200 SMA level.

Celsion is dedicated to the development and commercialization of oncology drugs including tumor-targeting treatments using focused heat energy in combination with heat activated drug delivery systems. Celsion has research, license or commercialization agreements with leading institutions such as the National Institutes of Health, Duke University Medical Center, University of Hong Kong, North Shore Long Island Jewish Health System.

Celsion Corporation (NASDAQ:CLSN) has been in the news for all the right reasons. Recently, Celsion Corporation (NASDAQ:CLSN) announced that it is effecting a 1 for 14 reverse stock split of its common stock which will be effective for trading purposes as of the commencement of trading on Tuesday, May 30, 2017. As of that date, each fourteen (14) shares of issued and outstanding common stock and common stock equivalents will be consolidated into one (1) share of common stock. In addition, at the market open on May 30, 2017, the common stock will trade under a new CUSIP number 15117N503 although the Company’s ticker symbol, CLSN, will remain unchanged.

The Barchart Technical Opinion rating is a 100% Sell with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is Strong. Long term indicators fully support a continuation of the trend. The market is approaching oversold territory. Be watchful of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oid prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 3.12 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 3.73 is also higher than the current trading price depicting a bearish trend overall..

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 30.80 suggesting a bearish price action.

Celsion Corporation (NASDAQ:CLSN) is all set to announce its earnings on May 12/b. As per Zack’s analyst ratings, Celsion Corporation (NASDAQ:CLSN) currently has an average brokerage rating of 1.67. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:CLSN) is $2.25 with a high of $4 and a low of $1.25.

As such, while we believe Celsion Corporation (NASDAQ:CLSN) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.