Silver lining to Sunesis Pharmaceuticals Inc. (NASDAQ:SNSS)’s dark cloud?


Sunesis Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule therapeutics for oncology and other serious diseases. It has built a broad product candidate portfolio through internal discovery and in-licensing of novel cancer therapeutics. It is advancing its product candidates through in-house research and development efforts and strategic collaborations with leading pharmaceutical and biopharmaceutical companies.

Sunesis to Host Conference Call and Webcast in Conjunction with First Quarter 2017 Financial Results on Monday, May 8 at 11:00 AM ET

Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) has been in the news for all the right reasons. Recently, Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) announced that the Company will withdraw its European Marketing Authorization Application (MAA) for vosaroxin as a treatment for relapsed/refractory acute myeloid leukemia (AML) in patients aged 60 years and older. The decision follows recent interactions with the European Medicine Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP), during which the Company learned that the committee was likely to formally adopt a negative opinion in its evaluation of the application.

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 23.95 suggesting a bearish price action.

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 3.48 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 3.90 is also higher than the current trading price depicting a bearish trend overall..

The Barchart Technical Opinion rating is a 88% Sell with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is in the Top 1%. Long term indicators mostly agree with the trend.

Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) is all set to announce its earnings on Jun 08/b. As per Zack’s analyst ratings, Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) currently has an average brokerage rating of 2.33. 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:SNSS) is $5 with a high of $5 and a low of $5.

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